Fortinet Inc (NASDAQ:FTNT) is set to report its second quarter results on July 29, with Jefferies analysts highlighting that the company needs to show an acceleration in product revenue growth to support investor confidence in the durability of its recent performance.
The firm expects solid product trends in the quarter, driven by price increases and improving channel checks, but wrote that investors will be looking for evidence the momentum can extend beyond the near term.
Jefferies expects product revenue growth to strengthen from the first quarter as Fortinet benefits from a full quarter of higher pricing and what it described as improving demand trends. The firm's proprietary survey showed performance versus plan improved sequentially, while channel checks pointed to healthy firewall demand despite some inventory constraints and longer appliance lead times.
The firm wrote that while product strength could continue for another quarter or two, it needs greater confidence that growth can be sustained into 2027 and that services billings, particularly subscriptions, will remain strong before becoming more constructive on the stock.
Billings will also be closely watched. Jefferies expects Fortinet to exceed its second-quarter billings guidance, which calls for 20% year-over-year growth at the midpoint, but does not expect management to significantly raise its full-year billings outlook given tougher comparisons in the second half of the year and longer lead times for appliances.
Margins are another focus. Jefferies expects Fortinet's midpoint guidance for a 34% non-GAAP operating margin to be achievable, supported by recent price increases and lower-cost inventory. However, it wrote that investors are likely to monitor the impact of rising memory costs and longer procurement cycles on margins later this year.
Jefferies' latest survey showed Fortinet's average performance versus plan improved to 2.3% above plan in the second quarter from 0.5% below plan in the first quarter, outperforming the average across cybersecurity vendors covered in the survey. The firm also wrote that investors will be looking for further signs of momentum in Fortinet's secure access service edge (SASE) business as the company continues to expand its bundled offerings.
Shares of Fortinet are up about 90% so far this year, trading hands at $151 on Thursday.
Wall Street analysts forecast that Fortinet (FTNT - Free Report) will report quarterly earnings of $0.75 per share in its upcoming release, pointing to a year-over-year increase of 17.2%. It is anticipated that revenues will amount to $1.88 billion, exhibiting an increase of 15.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Fortinet metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenue- Services' reaching $1.24 billion. The estimate suggests a change of +10.9% year over year.
Analysts predict that the 'Revenue- Product' will reach $633.38 million. The estimate suggests a change of +24.5% year over year.
The average prediction of analysts places 'Revenue- Services- Security subscription' at $723.10 million. The estimate points to a change of +12.2% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Services- Technical support and other' will reach $526.55 million. The estimate points to a change of +10.5% from the year-ago quarter.
Based on the collective assessment of analysts, 'Total billings (Non-GAAP)' should arrive at $2.14 billion. The estimate compares to the year-ago value of $1.78 billion.
The consensus estimate for 'Gross profit- Product Non-GAAP' stands at $432.99 million. Compared to the present estimate, the company reported $345.20 million in the same quarter last year.
The collective assessment of analysts points to an estimated 'Gross profit- Service Non-GAAP' of $1.07 billion. Compared to the present estimate, the company reported $984.70 million in the same quarter last year.
The combined assessment of analysts suggests that 'Gross profit- Product' will likely reach $412.00 million. Compared to the present estimate, the company reported $343.00 million in the same quarter last year.
It is projected by analysts that the 'Gross profit- Services' will reach $1.07 billion. Compared to the current estimate, the company reported $972.10 million in the same quarter of the previous year.
View all Key Company Metrics for Fortinet here>>>
Over the past month, Fortinet shares have recorded returns of +1.1% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #1 (Strong Buy), FTNT will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assetmark Inc. cut its stake in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 76.5% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 27,395 shares of the software maker’s stock after selling 89,368 shares during the quarter. Assetmark Inc.’s holdings in Fortinet were worth $2,239,000 at the end of the most recent quarter.
A number of other large investors have also made changes to their positions in FTNT. Optimist Retirement Group LLC boosted its holdings in Fortinet by 2.5% during the fourth quarter. Optimist Retirement Group LLC now owns 5,010 shares of the software maker’s stock worth $398,000 after buying an additional 122 shares in the last quarter. PDS Planning Inc increased its holdings in Fortinet by 3.1% in the fourth quarter. PDS Planning Inc now owns 4,110 shares of the software maker’s stock valued at $326,000 after buying an additional 123 shares in the last quarter. GW&K Investment Management LLC increased its holdings in Fortinet by 31.4% in the fourth quarter. GW&K Investment Management LLC now owns 515 shares of the software maker’s stock valued at $41,000 after buying an additional 123 shares in the last quarter. Delta Investment Management LLC lifted its position in shares of Fortinet by 2.4% during the 4th quarter. Delta Investment Management LLC now owns 5,250 shares of the software maker’s stock valued at $417,000 after acquiring an additional 125 shares during the period. Finally, Personal CFO Solutions LLC lifted its position in shares of Fortinet by 5.0% during the 1st quarter. Personal CFO Solutions LLC now owns 2,670 shares of the software maker’s stock valued at $218,000 after acquiring an additional 127 shares during the period. Hedge funds and other institutional investors own 83.71% of the company’s stock.
Insider Buying and Selling In other news, COO John Whittle sold 146,015 shares of Fortinet stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $128.41, for a total value of $18,749,786.15. Following the completion of the transaction, the chief operating officer owned 94,724 shares in the company, valued at approximately $12,163,508.84. This trade represents a 60.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ken Xie sold 160,632 shares of the business’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $145.58, for a total transaction of $23,384,806.56. Following the sale, the chief executive officer owned 52,972,372 shares of the company’s stock, valued at approximately $7,711,717,915.76. The trade was a 0.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 318,387 shares of company stock worth $43,403,063. Insiders own 17.60% of the company’s stock.
Analyst Ratings Changes FTNT has been the topic of a number of research reports. UBS Group upped their price target on Fortinet from $90.00 to $115.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Piper Sandler lifted their price objective on Fortinet from $90.00 to $110.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Truist Financial set a $183.00 target price on Fortinet and gave the stock a “buy” rating in a research report on Tuesday. Zacks Research upgraded Fortinet from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 14th. Finally, DZ Bank cut Fortinet from a “buy” rating to a “hold” rating and set a $125.00 target price on the stock. in a report on Tuesday, May 19th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty-four have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Fortinet has an average rating of “Hold” and a consensus price target of $123.61.
Read Our Latest Stock Report on FTNT
Fortinet Stock Down 2.3% Shares of NASDAQ:FTNT opened at $151.54 on Friday. Fortinet, Inc. has a 1 year low of $70.12 and a 1 year high of $170.35. The stock has a 50-day simple moving average of $147.43 and a 200-day simple moving average of $106.13. The stock has a market capitalization of $111.03 billion, a P/E ratio of 58.51, a PEG ratio of 4.22 and a beta of 1.09. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.07 and a current ratio of 1.15.
Fortinet (NASDAQ:FTNT – Get Free Report) last issued its earnings results on Wednesday, May 6th. The software maker reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.20. The company had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.73 billion. Fortinet had a return on equity of 160.08% and a net margin of 27.49%.The company’s revenue was up 20.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.58 earnings per share. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. Equities analysts forecast that Fortinet, Inc. will post 2.8 earnings per share for the current year.
Fortinet Profile (Free Report)
Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.
Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.
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Fortinet Inc (NASDAQ:FTNT) is set to report its second quarter results on July 29, with Jefferies analysts highlighting that the company needs to show an acceleration in product revenue growth to support investor confidence in the durability of its recent performance.
The firm expects solid product trends in the quarter, driven by price increases and improving channel checks, but wrote that investors will be looking for evidence the momentum can extend beyond the near term.
Jefferies expects product revenue growth to strengthen from the first quarter as Fortinet benefits from a full quarter of higher pricing and what it described as improving demand trends. The firm's proprietary survey showed performance versus plan improved sequentially, while channel checks pointed to healthy firewall demand despite some inventory constraints and longer appliance lead times.
The firm wrote that while product strength could continue for another quarter or two, it needs greater confidence that growth can be sustained into 2027 and that services billings, particularly subscriptions, will remain strong before becoming more constructive on the stock.
Billings will also be closely watched. Jefferies expects Fortinet to exceed its second-quarter billings guidance, which calls for 20% year-over-year growth at the midpoint, but does not expect management to significantly raise its full-year billings outlook given tougher comparisons in the second half of the year and longer lead times for appliances.
Margins are another focus. Jefferies expects Fortinet's midpoint guidance for a 34% non-GAAP operating margin to be achievable, supported by recent price increases and lower-cost inventory. However, it wrote that investors are likely to monitor the impact of rising memory costs and longer procurement cycles on margins later this year.
Jefferies' latest survey showed Fortinet's average performance versus plan improved to 2.3% above plan in the second quarter from 0.5% below plan in the first quarter, outperforming the average across cybersecurity vendors covered in the survey. The firm also wrote that investors will be looking for further signs of momentum in Fortinet's secure access service edge (SASE) business as the company continues to expand its bundled offerings.
Shares of Fortinet are up about 90% so far this year, trading hands at $151 on Thursday.
Issued on behalf of Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80)
The migration to quantum-resistant encryption has shifted from a research topic to a procurement mandate, and one Canadian company is trying to turn that regulatory wave into regional footholds. Its latest move localizes its platform for Malaysia's critical-infrastructure rules.
, /PRNewswire/ -- USA News Group News Commentary - For years, the threat that quantum computers could one day break the encryption protecting the world's data was treated as a problem for the future. That framing has changed. Governments are now writing quantum-resistant security into law, enterprises are being told to inventory and migrate their cryptography on fixed timelines, and the phrase "harvest now, decrypt later," the idea that adversaries are already stockpiling encrypted data to crack once quantum machines mature, has moved from conference panels into procurement documents. In that environment, the companies that can help organizations actually make the switch are the ones positioned to benefit.
One of them just expanded its reach into Southeast Asia, and it did so by aligning itself directly with a national cybersecurity law that is about to force a wave of spending.
Key Takeaways
Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80) signed a memorandum of agreement with a Malaysia-based digital trust and certificate-management provider to build a Malaysia-specific version of its QPrime post-quantum platform.
The tailored platform is designed to help Malaysia's National Critical Information Infrastructure organizations prepare for the country's Cyber Security Act 2024 (Act 854), with the solution hosted on Malaysian sovereign infrastructure and data residency kept in-country.
The broader post-quantum and cybersecurity sector is running hot, with SEALSQ (NASDAQ: LAES), CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT) all riding the quantum-migration and AI-security demand cycle.
A Partnership Built Around a National Mandate
Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN80), a post-quantum cybersecurity company focused on quantum-resilient data protection, identity security, secure storage, and cryptographic migration readiness, announced that it has signed a memorandum of agreement with a Malaysia-based digital trust and certificate-management provider that forms part of a global digital trust ecosystem. Under the agreement, QSE and its Malaysian partner intend to develop a Malaysia-specific version of QSE's full secure posture platform, known as QPrime.
The purpose of the tailored platform is specific and regulatory. It is intended to help Malaysia's National Critical Information Infrastructure organizations, referred to as NCII, prepare for requirements under Malaysia's Cyber Security Act 2024, known as Act 854. In plain terms, QPrime is designed to help organizations understand where encryption is used across their systems, where cyber and quantum-related exposure may exist, and what steps to prioritize as they plan their move toward post-quantum security. It is an assessment and migration-planning tool for the messy, essential first step of any cryptographic transition: figuring out what you have and where you are vulnerable.
A notable feature of the arrangement is where the data will live. The parties intend to host the Malaysia-specific QPrime solution on Malaysian sovereign infrastructure, with data residency kept inside the country. For government agencies and regulated organizations, that detail matters: sensitive cybersecurity information, assessment results, and compliance records need to remain within national borders. Data sovereignty has become a central requirement in government technology procurement worldwide, and building it into the offering from the start is what makes a solution viable for public-sector and regulated buyers.
Malaysia's Cyber Security Act 2024 has sharpened the focus on cybersecurity readiness for NCII organizations, a category that can span government, financial services, communications, energy, healthcare, transportation, and other critical services. That breadth is the commercial opportunity: each of those sectors houses organizations that now face a compliance obligation and will need tools to meet it.
"This MOA is important because it is focused on a clear market need," said Ted Carefoot, Chief Executive Officer of QSE. "Malaysia's NCII organizations need practical tools to understand their cybersecurity exposure, prepare for Act 854 and plan for post-quantum risk. By working with a Malaysian digital trust provider and supporting local data residency, we believe QPrime can become a practical starting point for organizations that need to move from awareness to action."
Read the whole story on Quantum Secure Encryption by clicking here
A Strategy of Localizing, Not Just Selling
The Malaysia agreement is a window into how QSE is trying to grow. Rather than pushing a single, one-size-fits-all product into every market, the company says it is adapting its technology to local regulatory requirements, local data-residency needs, and real customer workflows, scaling its existing platform through regional partners. For QSE, the memorandum supports a broader strategy of moving QPrime from a general post-quantum assessment platform toward a local, compliance-focused solution built around the specific needs of Malaysian NCII organizations.
It is a sensible approach for a smaller company in a market increasingly crowded with large incumbents. Competing head-to-head on scale against global security giants is difficult; embedding into specific national compliance regimes, alongside a local partner who understands the regulatory terrain and carries existing relationships, is a way to win business the incumbents may overlook or reach more slowly. The company describes its Malaysian partner as part of a global digital trust ecosystem, which suggests the relationship could open doors beyond a single market if the model works.
QSE describes itself as a Canadian technology company specializing in post-quantum data security, encryption, and secure data infrastructure, built around quantum-delivered entropy and a zero-knowledge architecture, serving commercial, enterprise, and public-sector organizations that need long-term data confidentiality. The Malaysia move is a test of whether that technology can be packaged to meet a specific national law, and whether the regional-partner playbook can be repeated elsewhere.
Why the Timing Matters
The backdrop to all of this is a global regulatory push that has turned post-quantum migration from optional to mandatory. In the United States, an executive order has accelerated the federal government's migration to post-quantum cryptography, and the National Institute of Standards and Technology has finalized quantum-resistant algorithm standards that are now being implemented. Canada has directed its federal departments to submit migration plans, and national-security agencies have set deadlines for full quantum-resistance of sensitive systems. Malaysia's Act 854 is part of that same global wave, and it is the specific mandate QSE is now aligning itself with.
The market that results is sizable and growing quickly. Industry estimates put the post-quantum cryptography market in the low billions of dollars in 2025 and project rapid compound growth through the rest of the decade, driven precisely by the government mandates and enterprise compliance obligations now taking effect. For a company positioned as a pure-play in that space, the challenge is less about whether demand will materialize and more about capturing a share of it against far larger competitors, which is exactly what the regional-localization strategy is designed to address.
Track the Signals Before the Crowd
The best positioning happens before the crowd catches on. Eagle Eye is a real-time investor signal-intelligence platform that surfaces sentiment shifts, news flow, and trending tickers as they form, so you see attention building instead of chasing it. Watch it live at eagle-eye.dev.
The Companies Riding the Same Security Wave
QSE is a micro-cap operating in a sector that also contains some of the best-performing large-cap technology stocks of 2026. The four companies below span the post-quantum and broader cybersecurity landscape, and while they differ enormously from QSE in size and stage, they show why capital has been flowing toward security names all year. They are referenced for market and sector context only and are not peers, competitors, or financial comparables to QSE.
SEALSQ (NASDAQ: LAES)
SEALSQ is the closest pure-play post-quantum comparison in the public market. The company builds post-quantum secure microcontrollers and digital-certificate technology, positioning itself at the silicon layer of the quantum-safe transition. It reported roughly 66% revenue growth for its 2025 fiscal year to about US$18.3 million, with a commercial pipeline it has described as exceeding US$200 million and a large cash position, and its shares have been an active trading vehicle for the post-quantum theme. Because SEALSQ's certificate and secure-chip focus overlaps conceptually with the digital-trust and certificate-management angle of QSE's Malaysia partnership, it is the most thematically relevant name here, even though it operates at a different layer of the stack and a far larger scale.
CrowdStrike (NASDAQ: CRWD)
CrowdStrike is one of the defining cybersecurity franchises of the era, and one of the few large-cap security names to keep compounding through the 2026 software correction. Its shares have risen roughly 75% year to date, trading near a 52-week high, and the company recently completed a four-for-one stock split that broadened retail access. Its Falcon platform is increasingly positioned as the layer through which enterprise crypto-agility and post-quantum policy enforcement will eventually be delivered, giving it structural exposure to the same regulatory tailwind driving pure-play post-quantum vendors. CrowdStrike illustrates the scale and market enthusiasm at the top of the security sector that QSE sits far below but shares a tailwind with.
Palo Alto Networks (NASDAQ: PANW)
Palo Alto Networks is integrating post-quantum cryptography capabilities directly into what is one of the largest security platforms in the industry. It is repeatedly named among the handful of companies leading enterprise-grade quantum-safe adoption, and its shares climbed in mid-July 2026 alongside the broader security group on read-throughs about elevated cyber demand. After a very strong run, the stock has also drawn analyst caution on valuation, a reminder that even the leaders in this theme carry risk. Palo Alto shows how the largest platform vendors are absorbing post-quantum capability into their existing suites, which is both the opportunity and the competitive pressure that shapes the environment smaller specialists like QSE operate in.
Fortinet (NASDAQ: FTNT)
Fortinet has quietly been one of the best-performing large-cap stocks in the entire market in 2026, up roughly 100% year to date and trading near its 52-week high, and it pairs that with elite profitability, including net margins above 27% and a very high return on equity. Known for its FortiGate firewalls and broader Security Fabric platform, Fortinet is among the firewall and network-security vendors most often cited as beneficiaries of the migration cycle and of rising AI-driven security demand. It rounds out the picture of a cybersecurity sector where capital has rewarded scale, profitability, and exposure to structural security spending, the same secular forces QSE is attempting to tap at the specialist end.
A Small Company Aligned With a Large Trend
QSE is a micro-cap with the risks that come with that profile: it is small, it competes against vastly larger and better-capitalized companies, and a memorandum of agreement is an intention to build, not a guarantee of revenue. The Malaysia platform still has to be developed, adopted, and paid for before it contributes materially to the business. Those are real caveats, and the gap in scale between QSE and the large-cap names sharing its sector is enormous.
What QSE has done is align itself precisely with the force reshaping its industry: government mandates that turn post-quantum migration from a choice into a requirement. By localizing its platform to a specific national law, keeping data in-country, and partnering with a provider that already understands the market, the company has laid out a repeatable template for turning regulation into revenue. Whether it can execute on that template is the open question, but the strategy is aimed squarely at where the demand is being created.
Read more on Quantum Secure Encryption here
Article Source:
Quantum Secure Encryption Corp., "QSE Expands Global Post-Quantum Cybersecurity Footprint Through Malaysia Partnership," July 23, 2026. USA News Group | [email protected]
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This article is being distributed by USA News Group, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL was previously paid a fee directly by Quantum Secure Encryption Corp. for advertising and digital media services under an agreement that has since expired, and MEL has not been paid any fee for this article. MEL expects to receive compensation in the future in connection with Quantum Secure Encryption Corp. as part of an anticipated ongoing digital media effort to increase visibility for the company. The content of this article was prepared independently by MEL. This present and expected future compensation, together with the share ownership described below, constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged not to use this publication as the basis for any investment decision.
Market Equities and its owners, operators, directors, and affiliates own shares of Quantum Secure Encryption Corp., which were acquired through private placement and in the open market, and reserve the right to buy and sell shares of Quantum Secure Encryption Corp. at any time without further notice, commencing immediately and ongoing, in the open market, through private placements, and/or through other investment vehicles. There may also be third parties who hold shares of Quantum Secure Encryption Corp. and may liquidate their shares, which could have a negative effect on the price of the stock.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this publication is not trustworthy unless verified by their own independent research. Because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may lose some or all of your investment.
Cautionary Note Regarding Forward-Looking Statements. This article contains, and references a company news release that contains, forward-looking statements within the meaning of applicable Canadian securities legislation. Statements regarding the memorandum of agreement, the development of a Malaysia-specific QPrime platform, intended data-residency and sovereign-hosting arrangements, Act 854 readiness, the company's regional-partner strategy, and future demand for post-quantum cryptography are forward-looking and are not guarantees of future performance or results. A memorandum of agreement represents an intention and is subject to further development, definitive agreements, adoption, and execution risk; there is no assurance it will generate revenue. References to SEALSQ, CrowdStrike, Palo Alto Networks, and Fortinet are for market and sector context only; those companies are not peers, competitors, or comparables of Quantum Secure Encryption Corp., differ substantially in size, stage, and business, and their performance is not indicative of QSE's prospects. All third-party figures are approximate and subject to change. Readers are cautioned not to place undue reliance on forward-looking statements and should refer to the company's continuous-disclosure filings available under its profile on SEDAR+ at www.sedarplus.ca. This disclaimer, together with your access to and use of this content, shall be governed by and construed in accordance with the laws of Ireland.
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Alamar Capital Management LLC bought a new position in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 28,710 shares of the software maker’s stock, valued at approximately $2,346,000. Fortinet makes up about 1.4% of Alamar Capital Management LLC’s investment portfolio, making the stock its 17th largest holding.
Other hedge funds and other institutional investors also recently bought and sold shares of the company. Physician Wealth Advisors Inc. boosted its holdings in Fortinet by 408.3% in the first quarter. Physician Wealth Advisors Inc. now owns 305 shares of the software maker’s stock valued at $25,000 after purchasing an additional 245 shares in the last quarter. Wexford Capital LP acquired a new position in shares of Fortinet in the 3rd quarter valued at $25,000. Elyxium Wealth LLC purchased a new position in shares of Fortinet in the 4th quarter valued at $27,000. Palisade Asset Management LLC purchased a new position in shares of Fortinet in the 3rd quarter valued at $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in Fortinet during the 4th quarter worth $29,000. 83.71% of the stock is currently owned by institutional investors and hedge funds.
Fortinet Trading Down 1.9% Shares of Fortinet stock opened at $155.05 on Thursday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.07 and a current ratio of 1.15. The company has a market capitalization of $113.60 billion, a P/E ratio of 59.87, a PEG ratio of 4.30 and a beta of 1.09. Fortinet, Inc. has a 1 year low of $70.12 and a 1 year high of $170.35. The company’s fifty day moving average is $146.83 and its two-hundred day moving average is $105.61.
Fortinet (NASDAQ:FTNT – Get Free Report) last announced its earnings results on Wednesday, May 6th. The software maker reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.20. The business had revenue of $1.85 billion during the quarter, compared to analysts’ expectations of $1.73 billion. Fortinet had a net margin of 27.49% and a return on equity of 160.08%. The business’s revenue was up 20.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.58 earnings per share. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. Analysts forecast that Fortinet, Inc. will post 2.8 earnings per share for the current year.
Fortinet News Summary Here are the key news stories impacting Fortinet this week:
Positive Sentiment: Fortinet was highlighted as one of the better-positioned cybersecurity names to benefit from rising enterprise AI adoption, with demand expected to grow for AI security, identity protection, and Zero Trust solutions. Article Title Positive Sentiment: Another note described Fortinet as a GARP candidate, suggesting investors can still find upside in the stock because of its solid growth prospects relative to valuation. Article Title Positive Sentiment: Analyst sentiment improved, with Robert W. Baird raising its price target and another report saying a Fortinet analyst is “no longer bearish,” reinforcing confidence in the company’s fundamentals. Article Title Positive Sentiment: Fortinet also announced a collaboration with Intel to develop its next-generation Security Processor 6, a sign of continued product innovation and supply-chain diversification. Article Title Neutral Sentiment: Broker commentary also warned that cybersecurity valuations remain elevated ahead of earnings, which could limit near-term upside for FTNT despite the company’s strong positioning. Article Title Negative Sentiment: Recent market action showed Fortinet trading lower as broader markets moved higher, suggesting some profit-taking or valuation pressure remains in the stock. Article Title Analyst Upgrades and Downgrades Several equities analysts have issued reports on FTNT shares. Royal Bank Of Canada restated a “sector perform” rating and issued a $160.00 price objective on shares of Fortinet in a research note on Thursday, July 16th. Robert W. Baird set a $120.00 target price on Fortinet in a research report on Tuesday. BTIG Research boosted their target price on Fortinet from $150.00 to $186.00 and gave the company a “buy” rating in a report on Friday, July 10th. Wall Street Zen raised Fortinet from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Finally, Arete Research set a $104.00 price target on Fortinet and gave the stock a “buy” rating in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twenty-four have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $121.10.
Get Our Latest Research Report on Fortinet
Insider Activity In other news, VP Michael Xie sold 3,907 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $146.44, for a total value of $572,141.08. Following the completion of the sale, the vice president owned 9,923,610 shares in the company, valued at approximately $1,453,213,448.40. This trade represents a 0.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO John Whittle sold 146,015 shares of Fortinet stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $128.41, for a total transaction of $18,749,786.15. Following the completion of the sale, the chief operating officer directly owned 94,724 shares in the company, valued at approximately $12,163,508.84. The trade was a 60.65% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 318,387 shares of company stock valued at $43,403,063. Company insiders own 17.60% of the company’s stock.
About Fortinet (Free Report)
Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.
Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.
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SANTA CLARA, Calif. & SUNNYVALE, Calif.--(BUSINESS WIRE)--Intel and Fortinet Collaborate to Advance Cybersecurity Innovation and Strengthen Global Supply Chain Resilience.
Fortinet (FTNT - Free Report) closed the most recent trading day at $158.10, moving -1.41% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.89%. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.
Shares of the network security company witnessed a gain of 10.3% over the previous month, beating the performance of the Computer and Technology sector with its loss of 6.6%, and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. It is anticipated that the company will report an EPS of $0.75, marking a 17.19% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 15.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.15 per share and a revenue of $7.8 billion, demonstrating changes of +14.13% and +14.67%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. At present, Fortinet boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 50.85. This expresses no noticeable deviation compared to the average Forward P/E of 50.85 of its industry.
We can additionally observe that FTNT currently boasts a PEG ratio of 3.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security industry stood at 3.24 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying FTNT stock? Here’s what analysts think:
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While Intel continues to pursue a marquee customer for its foundry services, the chipmaker has landed a notable client from the cybersecurity space.
Fortinet will use Intel's foundry to produce its next-generation security chip, the two companies announced Tuesday, marking a win for Intel CEO Lip-Bu Tan, who took over the company in March 2025. Fortinet's chip, SP6, will be manufactured on the Intel 4 process, an Intel representative told CNBC.
Intel said in a filing in April that it's still trying to secure a "significant" customer for the company's most advanced manufacturing technology, as it tries to justify the large capital expenditures needed to build factories in the U.S. and overseas.
The company's leading processes designed to manufacture computer processors are known as 14A and 18A. Intel 4 is older manufacturing technology that's less advanced and was established for simpler chips called ASICs for networking.
Tan told CNBC's Jim Cramer in May that "multiple customers" were working with Intel's foundry, but he also said that it's his personal policy not to disclose their names. A major customer announcement would increase confidence among chip designers and investors that Intel is capable of building the most advanced chips in large quantities.
So far, Intel's biggest confirmed customer for its foundry is itself. The U.S. government is also using the foundry to make chips for defense. Under Pat Gelsinger, Intel's previous CEO, Microsoft announced a partnership with the chipmaker to manufacture an unspecified processor in 2024, and Amazon said later that year it would use Intel to build a custom artificial intelligence chip, but those announcements were for relatively low-volume chips.
In April, Intel said it would help design an ASIC with Google that it calls an infrastructure processing unit. Intel is also helping Elon Musk's Tesla and SpaceX build a chip factory called Terafab. And President Donald Trump said in June that Apple would use Intel to manufacture chips in the U.S., but neither company has officially confirmed a deal. The U.S. government took a 10% stake in Intel in August, sparking a rally that's lifted the chipmaker's stock price by more than 300% in the past year.
Intel is scheduled to report second-quarter results on Thursday after the bell.
Fortinet doesn't have the name recognition of Apple, Tesla or any of the hyperscalers, but it's operating in a hot market due to the heightened demand for advanced security in a world increasingly dominated by AI. Fortinet's stock price has more than doubled this year, and the company said on its last earnings call in May that it would keep in investing in its ASIC technology.
The AI trade, at least for the time being, has come to an end. Many leaders have officially broken below major support and key moving averages, signaling a change in market momentum. Semiconductors, memory names, neoclouds, photonics, the groups that led the market for most of the year, have sold off hard over the past month. But one corner of technology has barely flinched: cybersecurity. And in a tape like this, that kind of relative strength is exactly what tends to precede leadership changes.
The numbers tell the story cleanly. The Amplify Cybersecurity ETF NYSEARCA: HACK is up 15.4% over the past 30 days and hit a fresh 12-month high in early July. Over that same 30-day stretch, the VanEck Semiconductor ETF NASDAQ: SMH fell almost 9%. The gap widens further when measured against their peaks. HACK sits less than 5% below its 52-week high, while SMH trades roughly 17% below its own, and many memory and semiconductor leaders sit 15% to 25% off their recent highs. It is worth noting that Bank of America just called long semiconductors the most crowded trade ever, while cybersecurity stocks actually rose on one of the market's ugliest sessions last week.
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When money rotates out of a crowded theme, it looks for quality groups with their own demand drivers. Cybersecurity, with rising AI-driven threats and non-discretionary budgets, fits that description well. Three names in particular have been leading the way.
CrowdStrike: The Platform Leader Keeps CompoundingCrowdStrike Today
$207.16 +4.08 (+2.01%)
As of 09:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$85.68▼
$217.50Price Target$180.63
CrowdStrike NASDAQ: CRWD is up around 75% year to date and trades within striking distance of its 52-week high of $217.50. That momentum and outperformance have been backed by real business progress.
The company recently expanded its strategic partnership with Schwarz Digits to deliver sovereign cybersecurity across Europe and agreed to acquire XM Cyber's IP, while Frost & Sullivan named it Company of the Year for identity threat detection.
Analysts project earnings growth of almost 71% for the year ahead, and the recently completed 4-for-1 stock split has broadened retail accessibility. One potential flag for investors to note, however, is that the consensus price target of $180.42 across 50 analysts now sits below the share price, a familiar dynamic in stocks that move faster than models can be updated.
Fortinet: The Stock That Doubled While Nobody Was WatchingFortinet Today
$163.69 +2.08 (+1.29%)
As of 09:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$70.12▼
$170.35P/E Ratio63.12
Price Target$115.58
Fortinet NASDAQ: FTNT has quietly been one of the best large-cap stocks in the entire market, up almost 100% year to date, and it still sits roughly within 6% of its 52-week high. Unlike many high-flyers this year, Fortinet pairs that performance with elite profitability. The company has net margins of 27.5%, a return on equity above 130%, and $1.85 billion in trailing net income.
The news flow keeps improving, too, with TD SYNNEX selected this week as a global distributor and the FortiEndpoint platform expanding into AI security and governance.
The consensus rating is Hold with a target well below the current price, reflecting analyst caution after the double, but the tape has been ignoring that caution all year. Earnings arrive on July 29 for the cybersecurity outperformer, the nearest catalyst of the three.
Palo Alto Networks: The Sector Heavyweight at the HighsPalo Alto Networks Today
PANW
Palo Alto Networks
$363.44 +4.76 (+1.33%)
As of 09:43 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$139.57▼
$368.80P/E Ratio297.97
Price Target$327.74
Palo Alto Networks NASDAQ: PANW is the largest name in the group, with a market cap of almost $295 billion, up over 90% year to date and trading within 5% of its 52-week high.
The platformization strategy, consolidating firewalls, cloud security, and AI-driven security operations into a single stack, has made it the default enterprise choice as companies rush to secure their AI deployments.
The stock jumped almost 7% in a single session; Tigress Financial just raised its target to $430, and PANW currently sits on MarketBeat's most-upgraded stocks list with one of the strongest news sentiment scores among large-cap tech stocks.
The valuation is undeniably rich, and the consensus target of $327.74 trails the share price. But leadership stocks in emerging themes rarely look cheap.
A Changing of the Guard?Rotation is how bull markets stay alive. With the AI trade crowded and in the process of correcting, capital appears to be finding the one technology group whose demand continues to grow as the AI buildout expands. That's because every new model, agent, and data center creates a new attack surface to defend. If that relative strength holds, cybersecurity may not just be weathering this sell-off. It may be auditioning for leadership of the next leg higher.
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Fortinet (FTNT - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Fortinet is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Fortinet imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for FortinetFor the fiscal year ending December 2026, this network security company is expected to earn $3.15 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Fortinet. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Fortinet to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Fortinet is better positioned than Palo Alto to capture the AI-driven cybersecurity opportunity, supported by more justifiable valuation ratios and a stronger product portfolio. Fortinet's Q2 2026 TTM P/S is 32% lower and P/E is 80% lower than Palo Alto, despite similar revenue and FCF growth, indicating greater upside potential. Fortinet offers broader product breadth, more network security features, and superior competitive metrics, while Palo Alto leads in AI-related patents and strategic acquisitions.
SUNNYVALE, Calif., July 14, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced new capabilities for its unified endpoint platform, FortiEndpoint, designed to help organizations securely adopt AI, protect sensitive data, and reduce risk. By bringing AI visibility and control, native data security, endpoint risk scoring, and FortiAI-assisted operations into FortiEndpoint, Fortinet enables security teams to better govern AI usage, reduce sensitive data exposure, enforce risk-aware access, and simplify security operations across distributed environments.
“Organizations need a simpler and more effective way to manage security as their environments become more complex and AI-enabled,” said Michael Xie, Founder, President, and CTO at Fortinet. “The Fortinet Security Fabric is designed to converge critical security and networking functions across the enterprise, helping customers reduce complexity, improve visibility, and strengthen protection. With FortiEndpoint, we are extending that strategy by consolidating security, secure access, data security, AI visibility, and assisted operations in a unified endpoint platform, delivered through one agent, one console, and one license.”
A Platform Approach to AI-Era Endpoint Security
As agents and AI-enabled applications become embedded in everyday work, organizations need better visibility, stronger governance, and integrated protection to securely enable AI while reducing endpoint risk and protecting sensitive data. These needs are even more urgent as threat actors move faster and use increasingly sophisticated techniques to exploit gaps across users, devices, applications, and data. The pressure security teams are facing is compounded by fragmented tools across protection, detection and response, secure access, and data security, which can slow security teams and limit visibility.
FortiEndpoint builds on the consolidation strategy previewed at Fortinet Accelerate 2026 by bringing AI visibility and governance, endpoint protection, detection and response, secure remote access, native data security, and FortiAI-assisted operations together through one agent, one console, and one license. Through integration with the Fortinet Security Fabric, endpoint telemetry and risk context can inform connected security controls, strengthening adaptive access, policy enforcement, and enterprise-wide visibility.
These capabilities help define Fortinet’s approach to endpoint security for the AI era, advanced through three key areas of innovation:
Securing AI Use at the Endpoint
FortiEndpoint provides centralized visibility and control over sanctioned and unsanctioned AI application and agent usage across endpoints, including installed AI apps, agents, and web-based tools. From a single view, organizations can identify agents and applications in use, monitor adoption, and understand user activity to help surface shadow AI, unmanaged applications, and unauthorized tool usage.
With granular guardrail policies, security teams can allow, restrict, monitor, or block applications based on corporate security, compliance, and data security requirements. This supports responsible AI adoption while reducing the risk of unsanctioned tools, sensitive data exposure, and policy violations.
Reducing AI-Driven Data Exposure and Insider Risk
FortiEndpoint now natively supports DLP to help secure AI interactions and reduce insider risk by automatically inspecting sensitive data exchanged with AI applications, agents, and web services. Built-in user coaching provides real-time policy guidance to help users understand acceptable AI usage and reduce risky behaviors without impacting productivity.
This helps prevent the leakage of sensitive data such as personally identifiable information, intellectual property, and financial information directly at the endpoint. By integrating DLP into FortiEndpoint, organizations can safely adopt AI while maintaining stronger data security and compliance controls without adding another point product or management layer.
Unifying Endpoint Security, Access, Data Security and AI-Assisted Operations
FortiAI-Assist is built into FortiEndpoint to simplify administration and accelerate day-to-day operations. Security teams can use natural language to investigate events, visualize findings, generate investigation summaries, identify high-risk devices, and troubleshoot issues. It also provides contextual insights, policy recommendations, and risk guidance to help analysts strengthen governance, prioritize threats, scale threat hunting, and improve efficiency through a unified management experience.
These assisted workflows are complemented by adaptive zero-trust capabilities with dynamic risk and compliance scoring. By continuously assessing endpoint health, compliance status, and risk posture, FortiEndpoint helps organizations make access decisions based on real-time context, so access to AI applications and protected resources can be adjusted as risk changes. This helps organizations reduce exposure, enforce more consistent policy, and safely support AI-enabled work.
Industry analysts are also recognizing the importance of this integrated approach as organizations look for practical ways to govern AI use without adding more tools and complexity.
“Fortinet is addressing what many CISOs need now: visibility into AI usage, control over sanctioned and unsanctioned tools, protection against sensitive data leakage, and real-time coaching to help employees use AI responsibly,” said Chris DePuy, Technology Analyst at 650 Group. “Delivering these capabilities through FortiEndpoint gives customers a practical way to manage AI risk with the same agent and license they already rely on for endpoint security.”
Read the blog and listen to the webinar for more detail on how FortiEndpoint helps organizations securely adopt AI, protect sensitive data, reduce risk, and simplify security operations.
Availability
The new FortiEndpoint enhancements are expected to be available in Q3 2026. For more information, visit here.
Additional Resources
Read more about FortiEndpoint.Read more about the Fortinet Security Fabric.Learn about the Fortinet Open Ecosystem.Visit fortinet.com/trust to learn about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.Read about how Fortinet customers are securing their organizations.Learn about Fortinet’s commitment to product security and integrity, including its responsible product development and vulnerability disclosure approach and policies.Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube. About Fortinet
Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTS”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
In the latest close session, Fortinet (FTNT - Free Report) was up +1.97% at $160.62. The stock's change was more than the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
Shares of the network security company witnessed a gain of 7.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.44%, and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is scheduled to release its earnings on July 29, 2026. The company is predicted to post an EPS of $0.75, indicating a 17.19% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.88 billion, up 15.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.15 per share and a revenue of $7.8 billion, demonstrating changes of +14.13% and +14.65%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.68% higher. As of now, Fortinet holds a Zacks Rank of #3 (Hold).
Digging into valuation, Fortinet currently has a Forward P/E ratio of 49.95. This represents no noticeable deviation compared to its industry average Forward P/E of 49.95.
Also, we should mention that FTNT has a PEG ratio of 3.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Security industry was having an average PEG ratio of 3.14.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Key Takeaways Rising AI adoption is increasing demand for cloud, identity and AI-powered cybersecurity solutions.Palo Alto Networks and Fortinet are expanding integrated platforms with AI-driven security capabilities.SentinelOne and Okta are strengthening AI security and identity offerings to support enterprise demand. The cybersecurity landscape is becoming more challenging as businesses face a growing number of cyber threats. The rapid adoption of artificial intelligence (AI), cloud computing and connected devices has expanded the attack surface, giving cybercriminals more ways to target organizations. At the same time, businesses are deploying more AI applications, making it increasingly important to protect data, cloud environments and digital identities.
AI is also changing the way cyberattacks are carried out. Attackers are using AI to launch sophisticated cyberattacks, create more convincing phishing campaigns and identify security vulnerabilities faster. As a result, organizations are moving beyond traditional security tools and investing in AI-powered cybersecurity solutions that can detect and respond to threats in real time. Per the Fortune Business Insights report, the global cybersecurity market is expected to grow from $248.28 billion in 2026 to nearly $699.39 billion by 2034, representing a 13.8% compound annual growth rate.
SentinelOne (S - Free Report) , Palo Alto Networks, Inc. (PANW - Free Report) , Fortinet, Inc. (FTNT - Free Report) and Okta (OKTA - Free Report) are four cybersecurity stocks that are strategically positioned to ride the waves of a challenging cybersecurity landscape.
YTD Price Return Performance
Image Source: Zacks Investment Research
SentinelOne is benefiting from the growing demand for AI-powered cybersecurity solutions as businesses adopt more AI applications and cloud workloads. This Zacks Rank #2 (Buy) company’s Singularity platform brings together endpoint, cloud, data and AI security on a single platform, helping customers detect and respond to threats more quickly. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is seeing strong demand for its AI Security, Purple AI and AI SIEM offerings as enterprises look to secure AI applications and automate security operations. These above-mentioned solutions help customers secure AI workloads, automate threat investigations and improve security operations, supporting SentinelOne's long-term growth prospects.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at 36 cents per share, up by a penny over the past 60 days, suggesting 80% growth from the figure reported in fiscal 2026.
Palo Alto Networks is benefiting from growing enterprise demand for integrated cybersecurity platforms. This Zacks Rank #3 (Hold) company’s platformization strategy encourages customers to replace multiple security products with a single platform covering network, cloud, endpoint and identity security.
The company is expanding its AI security portfolio through Prisma AIRS, which protects AI applications and AI agents. Its Cortex and XSIAM platforms use AI to automate threat detection and response, helping organizations strengthen cybersecurity as AI adoption continues to grow. Continued growth in PANW’s Secure Access Service Edge (SASE), software firewalls and AI security solutions is expected to support its long-term growth.
The consensus mark for fiscal 2026 earnings is pegged at $3.77 per share, up 1.6% over the past 60 days, suggesting 12.87% growth from the figure reported in fiscal 2025.
Fortinet continues to benefit from strong demand for network security as businesses modernize their IT infrastructure and move more workloads to the cloud. Fortinet provides network security, cloud security and secure networking solutions to enterprises, service providers and government organizations.
Another Zacks Rank #3 company, Security Fabric platform integrates firewall, endpoint, cloud and network security, giving customers better visibility across their IT environments. The company continues to expand its SASE portfolio and embed AI across its security products to improve threat detection and automate security operations. These initiatives are helping Fortinet meet growing demand for integrated cybersecurity platforms.
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.15 per share, up couple of cents over the past 60 days, suggesting 14.1% growth from the figure reported in 2026.
Okta is a leading provider of identity and access management solutions that help businesses secure employee, customer and machine identities. Okta is benefiting from growing demand for identity security as businesses adopt more cloud applications and AI technologies. The company continues to expand its product portfolio with offerings such as Okta Identity Governance, Privileged Access, Identity Security Posture Management, Auth0 for AI Agents and Okta for AI Agents.
These solutions help organizations manage user and AI identities, control access to applications and reduce the risk of unauthorized access. Okta continues to add large enterprise customers and expand spending from existing customers, supporting steady long-term growth. As businesses deploy more AI applications, this Zacks Rank #3 company remains well positioned to benefit from the rising demand for identity security.
The consensus mark for fiscal 2027 earnings is pegged at $3.83 per share, up 1.1% over the past 60 days, suggesting 9.43% growth from the figure reported in fiscal 2026.
Shares of Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) are climbing again Thursday, up 5% in midday trading to $337 as the broader cybersecurity sector rebounds.
Shares of Fortinet, Inc. (FTNT) gain 7,651% since institutions first bought big in 2010.
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FTNT offers cybersecurity solutions and services to enterprises, communication service providers, governments, and small to medium-sized businesses, with heavy demand currently for its AI offerings. The company’s first-quarter fiscal 2026 earnings report showed $1.85 billion in quarterly revenue (a 20% year-over-year jump), non-GAAP per-share earnings of $0.82 (a 41.4% rise), and full-year guidance calling for up to $7.87 billion in revenue.
It’s no wonder FTNT shares are up 100% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Fortinet Attracting Inflows Institutional volumes reveal plenty. In the last year, FTNT has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in FTNT shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Fortinet.
Fortinet Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, FTNT has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +8.5%.
Now it makes sense why the stock has been generating Big Money interest. FTNT has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Fortinet has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s generated 116 outlier inflow signals since 2010 and is up 7,651% since the first one. The blue bars below show when FTNT was a top pick on the Outlier 20 report in the last decade…Big Money remains a buyer:
Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Fortinet Price Prediction The FTNT action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in FTNT at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
Fortinet (FTNT - Free Report) closed the most recent trading day at $158.67, moving -2.27% from the previous trading session. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
Shares of the network security company witnessed a gain of 13.5% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.38%, and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Fortinet in its upcoming release. The company plans to announce its earnings on July 29, 2026. On that day, Fortinet is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 17.19%. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 15.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $7.8 billion, which would represent changes of +13.77% and +14.65%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Fortinet currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 51.64 right now. This represents a premium compared to its industry average Forward P/E of 50.85.
It is also worth noting that FTNT currently has a PEG ratio of 3.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Security stocks are, on average, holding a PEG ratio of 3.31 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 110, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Explore the exciting world of Fortinet (FTNT 1.65%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of May 13, 2026. The video was published on Jul. 3, 2026.
Anand Chokkavelu has no position in any of the stocks mentioned. Jason Hall has positions in Fortinet. Toby Bordelon has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet. The Motley Fool has a disclosure policy.
SUNNYVALE, Calif., July 02, 2026 (GLOBE NEWSWIRE) --
News Summary
Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, announced that it will hold a conference call to discuss its second quarter 2026 financial results on Wednesday, July 29, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).
Fortinet's financial results conference call will be broadcast live in listen-only mode on the company’s investor relations website at http://investor.fortinet.com. While not required, it is recommended that you join at least 10 minutes prior to the event start.
The CEO’s and CFO’s prepared remarks, supplemental slides, and a call replay will be accessible from the Quarterly Earnings page on the Investor Relations page of Fortinet's website at https://investor.fortinet.com/quarterly-earnings.
About Fortinet (www.fortinet.com)
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (CERTS), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.
Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
Media Contact:Investor Contact:Analyst Contact:Tiffany CurciAnthony LuscriSarah GoodwinFortinet, Inc. Fortinet, Inc. Fortinet, Inc. [email protected]@[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.
FTNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. FTNT has a Momentum Style Score of B, and shares are up 3.2% over the past four weeks.
For fiscal 2026, 15 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $3.13 per share. FTNT boasts an average earnings surprise of +17.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FTNT should be on investors' short list.
Fortinet (FTNT - Free Report) closed the most recent trading day at $155.42, moving +2.69% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 2.07%.
The network security company's stock has climbed by 9.7% in the past month, exceeding the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
The investment community will be paying close attention to the earnings performance of Fortinet in its upcoming release. The company is forecasted to report an EPS of $0.74, showcasing a 15.63% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.88 billion, indicating a 15.44% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.13 per share and a revenue of $7.8 billion, representing changes of +13.41% and +14.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. Fortinet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 48.28. This expresses a premium compared to the average Forward P/E of 44.58 of its industry.
We can also see that FTNT currently has a PEG ratio of 3.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry had an average PEG ratio of 3.1 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 46% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Key Takeaways Fortinet expanded FortiGate with new G Series models and launched the FortiSOC cloud SOC platform.FTNT posted 20% Q1 revenue growth, record free cash flow and raised full-year 2026 guidance.Fortinet balances FortiGate hardware growth with FortiSOC expansion amid rollout and adoption challenges. Fortinet's (FTNT - Free Report) push to expand its FortiGate hardware lineup and cloud-delivered security operations platform is reigniting investor attention on the cybersecurity firm's growth runway. The company recently widened its FortiGate G Series with the 3500G and 400G models, built on its proprietary NP7 and SP5 processors and running FortiOS 8.0, the operating system introduced in March 2026 with AI-driven security, SASE and quantum-safe capabilities.
The FortiGate 3500G targets high-density data centers, delivering 595 Gbps of firewall throughput and support for 179 million concurrent sessions, while consuming just 1.6 watts per Gbps of throughput. The FortiGate 400G, aimed at enterprise edges, offers 164 Gbps of firewall throughput and 28 million concurrent sessions. On the cloud side, Fortinet in June 2026 launched FortiSOC, a unified, cloud-delivered security operations platform that consolidates six SOC functions into a single SaaS experience with embedded agentic AI for alert investigation and response.
These product moves followed a strong first quarter. Revenues grew 20% year over year to $1.85 billion, with product revenues increasing 41% to $645 million and billings rising 31% to $2.09 billion. GAAP operating margin came in at 31%, non-GAAP operating margin at 36%, and non-GAAP EPS rose 41% to 82 cents, alongside record free cash flow of $1.01 billion. Management raised full-year 2026 revenue guidance to roughly 15% year-over-year growth, with full-year revenues now expected between $7.71 billion and $7.87 billion and non-GAAP operating margin guided to 33-36%.
The growth narrative isn't without friction. Product revenue strength reflects a hardware refresh cycle that can be lumpy, and the FortiSOC rollout currently spans only the U.S. and EMEA at launch, with broader regional expansion planned through 2026 — meaning near-term cloud contribution remains modest relative to the installed base. FortiSOC also layers onto, rather than replaces, existing tools like FortiAnalyzer and FortiSIEM, raising questions about how quickly customers migrate. Even so, the combination of differentiated ASIC-based hardware economics and an expanding SaaS security-operations footprint gives Fortinet two distinct growth levers heading into the back half of 2026, with execution against raised guidance the next test for the stock.
How Rivals Palo Alto Networks and Check Point CompareOn the same firewall-and-cloud-SOC theme, Palo Alto Networks (PANW - Free Report) and Check Point Software (CHKP - Free Report) offer contrasting benchmarks. Palo Alto Networks posted second-quarter fiscal 2026 revenues of $2.6 billion, up 15% year over year, with product revenues up 22%, while its Cortex XSIAM cloud SOC platform helped drive next-generation security ARR up 33% to $6.33 billion. Check Point, by contrast, reported first-quarter 2026 revenues of $668 million, up just 5%, with security subscriptions rising 11% to $323 million, as weaker firewall appliance revenues tied to go-to-market execution changes weighed on results. Against Palo Alto Networks' faster cloud-platform ARR growth and Check Point's appliance-driven softness, Fortinet's FortiGate hardware gains and FortiSOC launch position it between the two on execution.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 88.5% in the past six-month period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 48.4% and 11.6%, respectively.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 46.41, higher than the sector's average of 23.39. The company carries a Value Score of F.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.13 per share for 2026, which implies year-over-year growth of 13.41%.
Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SUNNYVALE, Calif., June 24, 2026 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the appointment of Derek Kan to its board of directors, contributing his deep expertise in scaling technology businesses, deploying AI, and governing large-scale, capital-intensive operations across the public and private sectors.
Key Takeaways FTNT launches FortiSOC, an AI-driven SecOps platform integrating 6 security functions into one SaaS console.FTNT posted Q1 revenues of $1.85B, up 20%, with billings rising 31% and EPS climbing 41% to 82 cents.Fortinet raised 2026 revenue outlook to $7.71B-$7.87B, citing AI-driven demand and platform innovation. Fortinet (FTNT - Free Report) is further leaning into artificial intelligence as a growth lever, having launched FortiSOC, a unified, cloud-delivered security operations center platform powered by agentic AI. The move raises the question of whether this AI-driven push can translate into sustained stock momentum. FortiSOC consolidates six security operations functions, including SIEM, SOAR, behavioral analytics, threat intelligence and identity threat detection, into a single SaaS console. Its centerpiece, FortiAI-Assist, autonomously investigates and correlates alerts, generates playbooks and coordinates response actions across thousands of multivendor tools using Model Context Protocol-based agent coordination, while keeping human analysts in oversight roles. The launch builds on AI-focused SecOps innovations previewed at the company's Accelerate 2026 event, positioning Fortinet to compete in the expanding market for AI-assisted threat detection as attackers themselves increasingly weaponize AI.
This AI expansion follows a financially strong first quarter wherein revenues reached $1.85 billion, up 20% year over year, while product revenues jumped 41% to $645 million. Billings, an indicator of forward demand, rose 31% to $2.09 billion. Profitability metrics were equally robust: non-GAAP operating margin hit a first-quarter record of 35.8%, non-GAAP earnings per share grew 41% to 82 cents, and the company generated record operating cash flow of $1.08 billion and free cash flow of $1.01 billion. An increasingly complex threat environment, intensified by AI, alongside new platform differentiators like FortiOS 8.0 and FortiASIC technology, were cited as demand drivers behind this growth.
On the back of this performance, Fortinet raised its full-year 2026 guidance, now projecting revenues between $7.71 billion and $7.87 billion and non-GAAP operating margin of 33% to 36%. Whether FortiSOC converts into durable subscription growth, however, remains to be tested against execution risk, AI-related competitive pressure and the company's ability to turn previewed innovations into sustained billings momentum in the coming quarters.
Microsoft and Palo Alto Networks Push Their Own Agentic AI BetsFortinet is not alone in racing toward agentic AI security. Microsoft (MSFT - Free Report) has built Security Copilot into an agentic SOC layer across Defender, Sentinel and Purview, alongside Agent 365, a control plane to govern AI agents that became generally available last month. Palo Alto Networks (PANW - Free Report) has taken a similar path through Prisma AIRS 3.0, designed to secure the full agentic AI lifecycle, reinforced by its 2026 acquisitions of Portkey and Koi to govern and protect autonomous agents. While Microsoft leans on platform-wide integration and Palo Alto Networks emphasizes lifecycle and identity security, both illustrate how agentic AI has become a central competitive battleground alongside Fortinet in cybersecurity.
FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have lost 20.4% in the past six-month period, underperforming the Zacks Security industry’s 9.8% decline and the broader Computer and Technology sector’s 22.1% growth.
FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FTNT appears overvalued, trading at a price-to-book ratio of 84.98, higher than the sector's average of 21.7. The company carries a Value Score of D.
FTNT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $2.69 per share for 2026, which implies year-over-year growth of 13.5%.
Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cybercriminals have compromised tens of thousands of Fortinet firewalls and VPNs used by major companies all over the world, according to two cybersecurity firms.
The widespread hacking campaign, which is ongoing and has been dubbed FortiBleed, appears to not involve abusing any unknown vulnerability in the targeted devices, but rather on a more basic issue: Companies may not be changing passwords to the firewall, nor making sure that the credentials they use for sensitive systems exposed on the internet are not already known by hackers.
In this campaign, hackers are first using automated tools to scan the internet for exposed Fortinet firewalls and VPNs. Then, they are breaking into the devices thanks to lists of previously known passwords. At that point, the cybercriminals can steal more sensitive data from the victim companies, cybersecurity firms Hudson Rock and SOCRadar wrote in their reports that they published this week.
“Once a device is compromised, [the hackers] use it as a listening post, monitoring traffic passing through and collecting any additional credentials that flow by. Those freshly collected passwords are then fed back into the scanner to compromise even more devices. The system feeds itself,” SOCRadar wrote.
Fortinet spokesperson Tiffany Curci told TechCrunch that the company “is aware of a reported third-party credential-harvesting campaign targeting Fortinet firewalls and VPN gateways.” Fortinet said that based on the company’s analysis, the data involved is “a resharing of data from previous incidents, as well as bruteforcing of credentials, and is not related to any recent incident or advisory.”
Hudson Rock said they found evidence that suggests more than 73,000 unique Fortinet URLs have been hacked, while SOCRadar said the total of hacked devices is more than 30,000.
According to Hudson Rock, the hacked companies include: Accenture, Comcast, Foxconn, Lenovo, Oracle, Samsung, Siemens, and PwC.
A Lenovo spokesperson acknowledged receipt of TechCrunch’s request for comment but did not respond. None of the other companies responded to a request for comment.
According to both Hudson Rock and SOCRadar, the countries with the most affected devices are India, the United States, Taiwan, and Mexico. But both companies say there are victims all over the world. As for industries, the most affected ones are IT services, construction materials, and telecommunications, according to Hudson Rock. Government agencies are also among the victims, per SOCRadar. Both cybersecurity companies said the group behind the hacking campaign appears to be Russian-speaking.
Hudson Rock and SOCRadar’s reports are based on the discovery of a list of credentials for Fortinet devices and associated companies. This hacking campaign was first reported by security researcher Bob Diachenko over the weekend. Independent cybersecurity researcher Kevin Beaumont said in a blog post on Wednesday that he analyzed the data and confirmed the data “is legit.”
In recent years, several hacking campaigns have targeted and compromised Fortinet devices, usually abusing vulnerabilities in those systems. Instead, in this case, the hackers are relying on leaked passwords, a simpler and less sophisticated attack.
Updated with comment from Fortinet.
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Lorenzo Franceschi-Bicchierai is a Senior Writer at TechCrunch, where he covers hacking, cybersecurity, surveillance, and privacy.
You can contact or verify outreach from Lorenzo by emailing [email protected], via encrypted message at +1 917 257 1382 on Signal, and @lorenzofb on Keybase/Telegram.
CompaniesWASHINGTON, June 17 (Reuters) - Researchers say a sweeping hacking campaign targeting devices made by Fortinet (FTNT.O), opens new tab has led to compromises across the internet, with evidence of password theft at Fortune 500 companies and government agencies in more than 15 countries.
Most of the affected devices were in the United States, India, and Taiwan, according to Hudson Rock, a firm that tracks cybercrime. Hudson Rock described the scale of the spy campaign as "staggering."
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"The scale of this breach touches nearly every sector of the global economy, sparing no industry," it said in a blog post, opens new tab published on Wednesday. The firm said that some 75,000 Fortinet firewall and VPN devices - tools that companies use to protect their networks and allow employees to log in remotely - had been compromised, potentially allowing the hackers to penetrate deeper into these organizations and steal data.
In a statement, Fortinet said it was aware of a campaign to steal login credentials from its firewall and VPN devices.
The company said that hackers were drawing on data "from previous incidents" and guessing passwords repeatedly - a technique known as "bruteforcing" to break into target networks or devices.
Fortinet said the malicious cyber activity was "not related to any recent incident or advisory." The company did not immediately respond to questions about the scope of the campaign uncovered by researchers, and Reuters could not establish how many password thefts led to intrusions at the affected companies.
Officials at the U.S. cyber defense agency CISA, the FBI, and the Office of the National Cyber Director did not immediately return emails. Cybersecurity officials in India and Taiwan did not immediately return emails.
Agencies in the states of Washington and Nevada whose credentials were captured in the data did not immediately respond to a request for comment. A staffer at one agency in South Carolina told Reuters they were unaware of the situation, while another employee said they would look into it before providing any additional information.
Nearly 120 distinct credentials across five government entities in Puerto Rico were among those swept up in the campaign, according to cybersecurity research firm Hudson Rock. A spokesperson for the Puerto Rico Police Department, which was included in the list, referred questions to the Puerto Rico Innovation and Technology Service. A spokesperson for the office did not immediately respond to a request for comment.
Bob Diachenko, a security researcher and owner of cybersecurity company Securitydiscovery.com, discovered the data in an open server as part of his normal monitoring work, he said in an interview.
"This is quite significant," he said, adding the campaign showed a "very creative approach to bruteforcing, with a multilayer password cracking architecture."
Diachenko said scripts discovered in the data included Russian-language instructions, suggesting the campaign may be the work of a Russian cybercrime group.
Reporting by Raphael Satter, Editing by Franklin Paul, Sanjeev Miglani and Lincoln Feast.
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Reporter covering cybersecurity, surveillance, and disinformation for Reuters. Work has included investigations into state-sponsored espionage, deepfake-driven propaganda, and mercenary hacking.
Cybersecurity correspondent covering cybercrime, nation-state threats, hacks, leaks and intelligence
Fortinet (FTNT) has surged 79% in six months, trading near all-time highs and at 47x forward earnings, reflecting robust demand-led growth. Q1 results showed 20% revenue growth, 31% billings growth, and broad-based product strength, driven by AI-driven security needs and platform adoption. Guidance calls for 18% full-year billings growth and 15% sales growth, supporting a double-digit upside and a plausible $180 price target.
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Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.
FTNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. FTNT has a Growth Style Score of A, forecasting year-over-year earnings growth of 13.4% for the current fiscal year.
15 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.15 to $3.13 per share. FTNT boasts an average earnings surprise of +17.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FTNT should be on investors' short list.
Fortinet is reissued as a "Strong Buy," with growth reaccelerating after inventory digestion and a robust beat on top and bottom lines. FTNT's product revenues surged 41% YoY, driven by AI data centers and a differentiated ecosystem, enabling continued market share gains. 2026 guidance includes $8.8–$9.1 billion in billings, 79%–81% gross margins, and $3.1–$3.16 EPS, supporting a FWD P/E of 46x and 13.4% YoY growth.
Key Takeaways PANW's SASE business grew strongly in Q3 FY26, but rising acquisition costs pressured margins.FTNT's Unified SASE billings rose 31% Y/Y in Q1 2026 and now represent about 25% of total billings.FTNT trades at a lower sales multiple than PANW while benefiting from FortiSASE demand. Palo Alto Networks (PANW - Free Report) and Fortinet (FTNT - Free Report) are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. While Palo Alto Networks focuses broadly on next-generation firewalls, cloud security and AI-driven threat detection, Fortinet combines a variety of hardware and cloud-based security solutions.
Both PANW and FTNT are riding the key industry trends, driven by the mounting incidents of credential theft, remote desktop protocol breaches and social engineering-based strikes by malicious actors. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for PANW StockPalo Alto Networks remains a cybersecurity leader, offering solutions for network security, cloud security and endpoint solutions for customers who need full enterprise security support. Its next-generation firewalls and advanced threat detection technologies are widely recognized and adopted globally.
Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust, Secure Access Service Edge (SASE) and private 5G security continue to support its long-term growth potential. For example, in the third quarter of fiscal 2026, SASE was Palo Alto Networks’ fastest-growing segment, with SASE Annual recurring revenues (ARR) increasing 40% year over year. PANW's SASE business is benefiting from strong customer demand for cloud-delivered networking and security solutions as enterprises continue to support hybrid work environments and secure access to cloud applications.
However, as a result of back-to-back acquisitions, PANW is incurring high integration-related costs, including onboarding employees, aligning go-to-market teams and integrating systems and operations. Acquisition-related costs in the third quarter of fiscal 2026 amounted to $113 million, a whopping increase from $5 million incurred in the prior quarter. These costs are expected to hurt the company's profitability before the benefits of synergies from acquisitions are fully realized.
Further, PANW’s non-GAAP operating expenses rose to $1.46 billion in the third quarter of fiscal 2026, up from $1.19 billion incurred in the prior quarter. As a percentage of revenues, operating expenses expanded 290 basis points sequentially. As a result, non-GAAP operating income margin contracted 320 basis points on a sequential basis. PANW is incurring rising costs, which could lead to slower operating leverage and warrant some caution about the company’s near-term prospects.
The Case for FTNT StockFortinet’s cloud security strategy is based on enabling organizations to move from SD-WAN to its Unified SASE platform. The Unified SASE platform combines networking and security into a cloud-based framework, unlike SD-WAN, which relies on on-premise hardware.
Fortinet's Unified SASE business is becoming an important growth driver. In the first quarter of 2026, Unified SASE billings increased 31% year over year. FTNT's Unified SASE now makes up about 25% of the company's total billings, showing that it has become a meaningful part of the business.
The company is seeing strong adoption of FortiSASE among large customers. At the end of the first quarter, 18% of Fortinet's large enterprise customers were using FortiSASE, up more than 45% year over year. Management said many customers who already use FortiGate firewalls are adding SD-WAN and SASE products. This gives Fortinet an opportunity to sell more products and services to its existing customer base.
Fortinet is also benefiting from demand for Sovereign SASE. FTNT's Sovereign SASE allows customers to run SASE in their own data centers instead of using a public cloud service. This is important for customers who need to meet data privacy, regulatory and sovereignty requirements. Management believes this offering helps differentiate Fortinet from many competitors and is seeing strong demand, especially in Europe.
To support further growth, Fortinet recently launched a new SD-WAN and SASE bundle. Management expects the bundle to make it easier for customers to adopt more networking and security services. With strong billings growth, rising customer adoption and opportunities to sell more services to existing customers, Unified SASE is becoming a larger part of Fortinet's growth story.
How do Earnings Estimates Compare for PANW & FTNT?Fortinet has a steady earnings growth outlook compared with Palo Alto Networks.
The Zacks Consensus Estimate for PANW’s fiscal 2026 and 2027 EPS is pegged at $3.77 and $4.08, respectively. The estimates for fiscal 2026 and 2027 have been revised up by 6 cents and 8 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Fortinet’s 2026 and 2027 EPS is pinned at $3.13 and $3.39, respectively. The estimates for 2026 and 2027 have both been revised upward by a penny over the past 30 days.
Image Source: Zacks Investment Research
PANW vs. FTNT: Price Performance and ValuationYear to date, shares of PANW and FTNT have surged 55.5% and 83.1%, respectively.
PANW Vs. FTNT: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, Fortinet is trading at a forward sales multiple of 13.02X, significantly lower than Palo Alto Networks’ forward sales multiple of 17.33X. FTNT’s reasonable valuation makes it more attractive for investors looking for value and stability.
PANW vs. FTNT: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: FTNT Has an Edge Over PANWBoth Palo Alto Networks and Fortinet are key players in the cybersecurity space, but their near-term outlooks are quite different. Palo Alto Networks faces near-term risks from rising integration costs due to large acquisitions, which are hurting the company’s margins.
In contrast, Fortinet shows steadier execution, where the company is witnessing strong adoption of FortiSASE, Unified SASE and Sovereign SASE. Further, FTNT’s reasonable valuation offers some downside protection as well, giving FTNT a clear edge over PANW for investors seeking exposure to cybersecurity growth at a fair price.
Fortinet and Palo Alto Networks carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet (FTNT - Free Report) ended the recent trading session at $148.00, demonstrating a +1.8% change from the preceding day's closing price. This change outpaced the S&P 500's 1.44% loss on the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 2.22%.
Coming into today, shares of the network security company had gained 8.56% in the past month. In that same time, the Computer and Technology sector gained 0.98%, while the S&P 500 gained 0.08%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.74, marking a 15.63% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 15.44% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $7.8 billion. These totals would mark changes of +13.41% and +14.65%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.5% higher. At present, Fortinet boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Fortinet is holding a Forward P/E ratio of 46.38. This represents a premium compared to its industry average Forward P/E of 41.69.
Investors should also note that FTNT has a PEG ratio of 3.53 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. FTNT's industry had an average PEG ratio of 2.87 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
SUNNYVALE, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the availability of FortiSOC, a unified, cloud-delivered security operations center (SOC) platform. FortiSOC brings together six security operations functions into a single Software-as-a-Service (SaaS) experience and embeds agentic AI to autonomously investigate and correlate alerts across assets and identities, then recommend or execute response actions under analyst oversight. Built on Fortinet’s proven security operations (SecOps) technologies, FortiSOC helps organizations simplify and scale modern operations through one console, one subscription, and one unified operating model.
“Security teams today are being challenged by faster attacks, growing investigation volume, and fragmented operations that simply don’t scale,” said Michael Xie Founder, President, and Chief Technology Officer at Fortinet. “FortiSOC gives organizations a simpler way to operationalize the SOC capabilities they need through a unified, cloud-delivered platform designed to support security teams of all sizes, from teams building foundational capabilities to enterprises scaling advanced SOC environments. With embedded AI, integrated workflows, and built-in best practices informed by Fortinet’s own global security operations center, FortiSOC delivers the power of an AI SOC to help customers eliminate complexity, automate threat detection and response, and stay a step ahead of attackers.”
One Unified Platform for Modern Security Operations
FortiSOC is designed to simplify how organizations operationalize security operations by unifying security information and event management (SIEM); security orchestration, automation, and response (SOAR); threat intelligence; and behavioral and identity threat detection (ITDR) into a single platform. With agentic AI and FortiGuard Labs threat intelligence, FortiSOC extends the SecOps innovations introduced at Fortinet Accelerate 2026 by integrating analytics, investigation, automation, and response workflows into a single cloud-delivered experience for modern environments. FortiSOC enables security teams to move from alert to investigation to response with reduced friction, fewer operational silos, and stronger cross-environment visibility.
Support for Every Stage of the SOC Journey
FortiSOC is designed to support organizations at every stage of SecOps adoption, from resource-constrained teams establishing foundational monitoring capabilities to highly sophisticated and advanced SOC teams requiring deeper automation, broader correlation, and AI-assisted investigation at scale.
Based on proven Fortinet technologies, FortiSOC extends this journey through a cloud-delivered approach that combines advanced cyber defense, essential network operations center (NOC) and IT visibility, and adaptable workflows that can expand with customer needs. Organizations can use it to establish a streamlined entry into SecOps, modernize legacy approaches, or scale large or mature environments without changing direction as requirements evolve.
FortiAI-Assist further differentiates FortiSOC by applying autonomous investigation, AI-generated playbooks, and Model Context Protocol (MCP)-powered agent coordination across alerts, investigations, threat hunting, cases, and response actions. Leveraging enterprise-wide telemetry and threat intelligence, FortiAI-Assist helps coordinate activity across tools, workflows, and teams within the same platform. Security teams can tailor processes, coordinate activity across security and IT systems, involve stakeholders across departments, and extend use cases over time while maintaining the speed, consistency, and control required in modern environments.
Key benefits include:
One platform, total control: Unify SIEM, SOAR, user and entity behavior analytics (UEBA), case management, threat intelligence, ITDR, and AI-driven operations into a single SaaS platform. FortiSOC gives security teams the speed of AI, consistency, and clarity to stay ahead of threats without the overhead of managing multiple tools.One subscription, zero complexity, better ROI: A single console and subscription model helps reduce procurement complexity, streamline day-to-day operations, and improve resource allocation so security teams can focus on the most important objective: stopping threats.Ready on day one, prepared for what comes next: Best-practice content for detection methods, playbooks, and more based on Fortinet’s own global SOC operations are available out-of-the-box. FortiGuard Labs real-time threat intelligence, outbreak alerts, and monthly content updates allow organizations to keep pace with the speed and sophistication of today’s threat actors.Connected by design, ready to scale: Native integrations across the entire Fortinet Security Fabric and thousands of third-party connectors eliminate coverage gaps and help organizations automate detection and response across security, IT, and business systems. MCP support extends this reach to diverse environments, allowing FortiAI-Assist to operate, orchestrate, and coordinate various AI capabilities and tasks throughout FortiSOC, minimizing manual handoffs that slow remediation. Extending the Fortinet SOC Platform
FortiSOC complements and expands the broader Fortinet SOC Platform portfolio of FortiAnalyzer, FortiSIEM, and FortiSOAR by uniting and extending these capabilities for customers who prefer a single cloud-based SOC platform model. These existing best-of-breed solutions will continue to be enhanced and available. Together, these solutions comprise the Fortinet SOC Platform, which delivers flexible pathways and purchase options tailored to meet customer needs today and offering them a smooth pathway for future evolution.
As organizations modernize SecOps, analysts continue to see growing demand for integrated, cloud-delivered SOC platforms that simplify operations and reduce tool sprawl.
“IDC research shows that organizations are increasingly prioritizing analyst workflow and investigation experience as well as cloud-delivered security operations as they work to improve visibility, streamline processes, and accelerate response,” said Michelle Abraham, Senior Research Director, Security and Trust, IDC. “FortiSOC builds on Fortinet’s established security operations portfolio by combining proven technologies into a unified SaaS platform that can support both foundational and advanced SOC use cases.”
Read the blog and listen to the webinar for more detail on how FortiSOC helps streamline SecOps and accelerate detection and response.
Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
Fortinet (FTNT - Free Report) closed at $149.49 in the latest trading session, marking a +2.18% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.65%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 3.07%.
Coming into today, shares of the network security company had gained 19.16% in the past month. In that same time, the Computer and Technology sector gained 0.33%, while the S&P 500 gained 0.48%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 15.63% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, up 15.44% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $7.8 billion. These totals would mark changes of +13.41% and +14.65%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.84% increase. At present, Fortinet boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Fortinet is at present trading with a Forward P/E ratio of 46.67. This indicates a premium in contrast to its industry's Forward P/E of 42.
Meanwhile, FTNT's PEG ratio is currently 3.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.96.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 108, finds itself in the top 45% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Fortinet (NASDAQ:FTNT | FTNT Price Prediction) just received an analyst downgrade from DZ Bank, with the firm moving to a Hold rating and a $125 price target. The same DZ Bank team simultaneously cut CrowdStrike (NASDAQ:CRWD) to Sell with a $500 price target, signaling a broader cautious turn on cybersecurity. For prudent investors, the move suggests valuation discipline is back in vogue after a torrid run in the group.
Fortinet stock trades near $126 and is up 59% year to date (YTD). That rally is the backdrop for DZ Bank’s price target cut and rating change.
Ticker Company Firm Action Old Rating New Rating Old Target New Target FTNT Fortinet DZ Bank Downgrade N/A Hold N/A $125 The Analyst’s Case DZ Bank’s downgrade reflects a more cautious near-term stance on cybersecurity after the group has run hard. The parallel CrowdStrike Sell rating reinforces the view that this is a sector-wide call reaching beyond Fortinet alone.
The bear case rests on maturing product refresh cycles, competitive pressure from CrowdStrike, Zscaler (NASDAQ:ZS), and Palo Alto Networks (NASDAQ:PANW), alongside valuation concerns after Fortinet’s surge. Share-take risk in the firewall market remains a structural overhang on the stock.
Company Snapshot Fortinet is a firewall and Secure Access Service Edge (SASE) platform leader, holding 55% unit market share in firewalls. Q1 FY2026 revenue grew 20% year over year (YoY) to $1.85 billion, with non-GAAP earnings per share of $0.82 topping the $0.62 consensus.
Fortinet also raised its full-year guidance, with FY2026 revenue now projected at $7.71 billion to $7.87 billion and non-GAAP EPS of $3.10 to $3.16. Free cash flow hit a record $1.01 billion in the quarter, underscoring the cash generation thesis.
Why the Move Matters Now The valuation math is an issue for Fortinet. The stock trades at a P/E ratio of 49x with a forward P/E ratio of 41x, well above the broad market and reflective of the YTD surge.
Peer benchmarks tell a similar story. CrowdStrike trades on a forward P/E ratio of 109x, leaving the entire group vulnerable to multiple compression if growth decelerates.
What It Means for Your Portfolio Long-term holders of Fortinet stock still have a durable bull case: persistent demand for network security, AI-driven security workloads, an attractive cash flow profile, and an ongoing transition to subscription-based revenue. Fortinet CEO Ken Xie asserted, “Billings grew 31% year over year, driven by the continued convergence of networking and security.”
However, the analyst downgrade is a reasonable prompt to trim oversized Fortinet positions and rebalance. Prudent investors might pair Fortinet exposure with peers like Zscaler, whose stock is down 22% YTD and offers a different risk profile.
Keep an eye on Fortinet stock through the next earnings cycle. The price target cut signals the easy money may be made, though Fortinet’s franchise and cash generation remain very much intact.
Josh Brown has added three cybersecurity names, Fortinet, Palo Alto Networks, and CrowdStrike, to his closely watched “best stocks in the market” portfolio.
Cybersecurity stands as the singular, non-negotiable line item in corporate IT budgets, immune to macroeconomic tightening.
Interestingly, the rapid advancement of artificial intelligence (AI) has fortified the sector’s growth trajectory rather than threatening it.
As AI accelerates the sophistication of global hacking capabilities, enterprise clients are materially scaling their defensive infrastructure – transforming the following three specialized cybersecurity stocks into indispensable digital utilities.
Josh Brown was drawn to Fortinet following a dramatic, clean “technical breakout” that decisively shattered an 18-month descending channel.
After compressed price action found consistent support in the $83 to $88 range, a massive first-quarter (Q1) earnings surprise exploded the stock past prior all-time highs to $124.
This powerful move pushed FTNT shares above its 50-day and 200-day moving averages (MAs) for the first time in a year and a half.
While its blistering relative strength index (RSI) of 85 indicates a highly overbought condition that requires near-term price digestion, the sheer velocity of the breakout confirms institutional accumulation, making it a premier addition to the elite momentum list.
That said, Wall Street currently rates Fortinet stock at “hold” only.
Palo Alto Networks stock earned its spot on the list through a decisive, come-from-behind victory that validated its aggressive “platformization” strategy.
Josh Brown highlighted the chart’s powerful trend momentum after the stock carved out a long, choppy base and cleared heavy resistance in the $180 to $190 range.
Backed by an absolute gusher of an earnings quarter, PANW embarked on a historic parabolic run – surging 71% in just 57 trading days to hit $245.
With an RSI of 86 reflecting sustained, multi-month trend momentum rather than a short-term squeeze, PANW successfully absorbed overhead supply, establishing a robust technical foundation built for long-term continuation.
Unlike FTNT, Wall Street analysts are also positive on PANW shares currently, with a consensus rating of “strong buy”.
As a core personal holding, CrowdStrike stock stands out to Josh Brown as a “top-tier” investment that shrugged off tech disruption fears to achieve scalding hot momentum.
After enduring a deep correction into the low $300s, CRWD shares formed a classic accumulation base characterized by higher lows.
CrowdStrike then exploded out of this coiling structure with immense authority, clearing previous highs to trade at a record $607.
Backed by an RSI of 83 and a powerful volume pattern, Brown views this breakout into all-time highs as a genuine institutional rotation, anchored firmly above its 50-day moving average and perfectly positioned for further structural upside.
Wall Street analysts currently rate CrowdStrike Holdings Inc at “moderate buy”.
On May 22, 2026, Fortinet Inc FTNT shares rose 3.5% today, bringing the current price to $133.93. The stock has shown significant price movement recently, with a 52-week range of $70.12 to $134.19.
GF Value™ verdict: Current price is $133.93 vs GF Value™ of $97.65, indicating the stock is 37.2% overvalued.GF Score™ of 94/100 suggests a strong overall performance based on key financial metrics.Notable signal: Insiders sold $1.0M worth of shares in the last 3 months, with no buying activity reported. Is FTNT Overvalued or Undervalued? According to the GF Value™, Fortinet Inc is currently overvalued. The stock is trading at $133.93, significantly above the estimated fair value of $97.65, creating a margin of safety that is notably absent. The GF Valuation label classifies the stock as significantly overvalued, which implies that the current price may not be justified by the underlying fundamentals. The risk associated with investing in FTNT at this price point is that potential future returns may be diminished if the stock corrects towards its intrinsic value.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the disparity between FTNT's market price and its GF Value™, investors may need to exercise caution when considering entry points into this stock.
How Does FTNT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 51.7x 46.9x Forward P/E 42.7x - FTNT's current P/E ratio of 51.7x is 10% above its 5-year median P/E of 46.9x, indicating that the stock is trading above its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that the stock is significantly overvalued at its current price.
What Does FTNT's GF Score™ Tell Us? Metric Rating GF Score™ 94 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 5/10 Momentum 5/10 The GF Score™ of 94/100 indicates that Fortinet Inc demonstrates strong performance in multiple areas. Notably, it scores 10/10 in both Profitability and Growth, which are its strongest aspects, suggesting robust operational efficiencies and potential for future expansion. However, the Valuation and Momentum rankings of 5/10 indicate a more neutral stance in those areas, highlighting the need for caution regarding its current price levels.
What Are Insiders Doing with FTNT Stock? Recent insider activity reveals that insiders sold $1.0M worth of shares in the past three months, with no buying activity reported during that period. This selling may suggest a lack of confidence among insiders regarding the stock's immediate prospects, which could be a cautionary signal for potential investors.
What This Means for Investors Based on the GF Value™, Fortinet Inc is classified as overvalued at its current price of $133.93. With a fair value estimate of $97.65, the stock appears to be trading significantly above its intrinsic value, presenting potential risks for investors. Caution is advised when considering investment decisions in light of this valuation assessment.
For the complete analysis, visit the Fortinet Inc FTNT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is FTNT's GF Score™?
FTNT has a GF Score™ of 94/100, which indicates a strong overall performance based on financial metrics and historical data.
Is FTNT overvalued or undervalued?
FTNT is overvalued with a current price of $133.93 compared to a GF Value™ of $97.65, marking it as significantly overvalued.
What is FTNT's P/E ratio?
FTNT's P/E ratio is currently 51.7x, which is 10% above its 5-year median P/E of 46.9x, indicating that the stock is trading above its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Fortinet: Steadily Growing RevenueFortinet (FTNT +0.89%) primarily generates revenue by selling network security hardware, software licenses, and ongoing subscription services to diverse global enterprises.
While introducing new enterprise firewall hardware and facing some shareholder investigations, it reported an approximately 29% net income margin for the quarter ended March 31, 2026.
Palo Alto Networks: Maintaining the Revenue LeadPalo Alto Networks (PANW +0.02%) provides advanced firewall appliances and cloud-based cybersecurity subscription services to large businesses and government entities around the world.
It recently finalized multiple corporate acquisitions and addressed critical software vulnerabilities, and it generated an approximately 17% net income margin for the quarter ended Jan. 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue helps individual investors clearly understand the total sales a business generates before any operating expenses are subtracted. It enables investors to gauge raw business scale and growth.
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Quarterly Revenue for Fortinet and Palo Alto NetworksQuarter (Period End)Fortinet RevenuePalo Alto Networks RevenueQ2 2024$1.4 billion (period ended June 2024)$2.0 billion (period ended April 2024)Q3 2024$1.5 billion (period ended Sept. 2024)$2.2 billion (period ended July 2024)Q4 2024$1.7 billion (period ended Dec. 2024)$2.1 billion (period ended Oct. 2024)Q1 2025$1.5 billion (period ended March 2025)$2.3 billion (period ended Jan. 2025)Q2 2025$1.6 billion (period ended June 2025)$2.3 billion (period ended April 2025)Q3 2025$1.7 billion (period ended Sept. 2025)$2.5 billion (period ended July 2025)Q4 2025$1.9 billion (period ended Dec. 2025)$2.5 billion (period ended Oct. 2025)Q1 2026$1.8 billion (period ended March 2026)$2.6 billion (period ended Jan. 2026)Data source: Company filings. Data as of May 19, 2026.
Foolish TakeAs the revenue numbers reveal, Palo Alto Networks is the larger cybersecurity company compared to Fortinet. Even so, Fortinet’s business is growing faster, as demonstrated by its first quarter revenue of $1.8 billion, which represents a 20% year-over-year increase. Its cybersecurity rival experienced 15% year-over-year growth to $2.6 billion in its fiscal second quarter ended Jan. 31.
Since both companies experienced excellent sales growth in their latest quarterly results, their stock prices have soared. Fortinet shares hit a 52-week high of $134.19 on May 22 while Palo Alto Networks stock reached a high of $261.41 that same day.
This is a dramatic reversal from the first quarter, when Wall Street became fearful artificial intelligence would take away business from cybersecurity companies, which led to a sell-off across the sector. As one of the bigger enterprises in the industry, Palo Alto Networks stock slumped to a 52-week low of $139.57 on Feb. 24.
In Q2, investors have come to realize those Q1 fears were overblown. In fact, the AI era means cybersecurity is more important, not less. As organizations become reliant on AI, hackers can more easily disrupt operations without the likes of Palo Alto Networks and Fortinet to protect them. Their outstanding year-over-year revenue growth illustrates customer demand remains strong in the cybersecurity sector.
Cybersecurity Demand Is High—Yet This ETF Is on SaleFortinet NASDAQ: FTNT executives said demand for AI-related data center security, operational technology protection and sovereign SASE offerings is contributing to a stronger pipeline, while the company continues to see product growth supported by firewall demand.
Speaking at a J.P. Morgan-hosted software event, CFO Christiane Ohlgart and Robert May, executive vice president of technology and product management, described AI as a broad opportunity for Fortinet, extending beyond data centers to enterprise security needs created by AI adoption.
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4 Reasons Fortinet Could Be at a Buyable BottomOhlgart said companies are evaluating whether to bring certain AI models into their own data centers as they assess the longer-term cost of using AI in the cloud. She said Fortinet is seeing more AI data center buildouts coming online, but characterized the opportunity as one that is likely to unfold over time rather than in a single large quarter.
“For us it’s not about one big quarter with AI data centers, but it’s going to be a consistent deployment as more companies start to look at how do they deploy AI and as other enterprises ramp up,” Ohlgart said.
AI Data Centers Highlight Fortinet’s Power Efficiency Pitch MarketBeat Week in Review – 02/02 - 02/06May said AI data center demand is coming from both existing data centers that are being repurposed or expanded and from new deployments. He said Fortinet’s history in data centers has been supported by its ASIC technology, citing “high performance, the low latency, the low power consumption” as attributes that are increasingly relevant in the AI era.
Ohlgart said about one-third of Fortinet’s firewall revenue comes from large firewalls, with another third from medium-sized firewalls and the remaining third from smaller firewalls. She said financial services and public sector customers often have larger data centers and that Fortinet’s low power consumption is an advantage for AI infrastructure, which consumes significant amounts of power.
May added that power consumption is becoming a more prominent factor in purchasing decisions. He also pointed to the ability to run the same operating system in virtual environments, including on NVIDIA BlueField DPUs, as a benefit for data center operators that want a single security management approach across environments.
Executives Point to On-Premises AI and Data Sovereignty Trends May said companies may start AI projects in public cloud environments but can later see cost advantages in running their own AI infrastructure, particularly as usage scales. He also cited data sovereignty requirements as a recurring customer concern across AI, SASE and other technologies.
Ohlgart said Fortinet’s global footprint could be an advantage, particularly in EMEA, where she said data sovereignty rules are creating greater concern about where data resides. “It is a global opportunity,” she said of AI-related deployments.
The executives contrasted the current environment with the COVID-era spending cycle, when the main driver was the sudden need to support large numbers of remote users. May said the current drivers are different, with customers focused on AI infrastructure, security needs and data location.
Firewall Demand Supported by OT, AI and SD-WAN Ohlgart said Fortinet is seeing multiple use cases for firewalls, including AI, operational technology and SD-WAN. She said OT has been a growth area for Fortinet for a long time and has continued to grow faster than the overall business in recent quarters.
She pointed to recent high-profile attacks and disruptions involving production, retail operations and airport terminals as factors raising awareness of the damage caused by OT attacks. “Companies are spending more money and are looking more into this area for security,” Ohlgart said, adding that OT remains a white space opportunity in many cases.
Ohlgart said she is confident in “continued high growth for firewalls for a significant time,” adding that the trend is not short term.
FortiOS 8.0, AI Security and Service Attach May discussed FortiOS 8.0, describing the company’s AI strategy in two categories: AI for security and security for AI. He said AI for security includes usability improvements, automation, agents and assistants that can help with deployment, troubleshooting and operations. Ohlgart added mitigation as another area of use.
On the security-for-AI side, May said FortiOS 8.0 addresses “shadow AI,” helping companies identify AI services and agents being used in their networks and control related traffic. He said many of those capabilities include a service component layered on top, which can support service attach rates.
Asked about AI models identifying vulnerabilities, May said Fortinet has focused for several years on communicating with customers and keeping them updated on the latest versions. Ohlgart said Fortinet has been focused on improving code quality and has programs in place to work with customers on upgrades. She said hardware replacement is typically required only for very old equipment, with operating system or application software upgrades usually being the first step.
SASE, Supply Chain and Pipeline Visibility Ohlgart said Fortinet’s pipeline is “improving significantly,” with security spending being prioritized as AI creates additional security needs and geopolitical tensions increase concerns around nation-state activity and attacks on critical infrastructure.
May said Fortinet’s sovereign SASE offering allows customers to choose from public locations, restrict data centers to specific countries or augment deployments with FortiGate appliances in specific locations. He said early customers for on-premises sovereignty needs include telecom providers and large financial institutions.
Ohlgart said service providers are interested in sovereign SASE because reselling third-party solutions can make them replaceable, while owning a sovereign SASE offering helps them maintain customer relationships. She also said service providers that host public sector applications are responding to stronger sovereignty requirements, particularly in Europe.
The executives also discussed Fortinet’s SD-WAN and SASE bundling. May said early reception has shown “large attraction” and that a SASE starter pack can make SD-WAN deployments smoother. Ohlgart said the bundle helps customers see how easy it is to deploy SASE after using SD-WAN, potentially creating upsell opportunities or displacing competitors and VPN solutions.
On supply chain, Ohlgart said Fortinet has historically maintained about two quarters of inventory on hand and continues to do so. She said the company is working to accelerate production for the rest of the year amid higher demand and noted that the industry is affected by increases in memory chip components. Fortinet’s direct relationships with memory vendors, in addition to contract manufacturers, are being used actively, she said.
Ohlgart said Fortinet now has inventory in Europe, Taiwan and the U.S. after buying a warehouse in Europe last year, improving warehouse capacity and risk management. She said the company’s visibility is typically strongest two quarters out, while the pipeline has supported confidence in its outlook following the first quarter.
About Fortinet NASDAQ: FTNTFortinet, Inc NASDAQ: FTNT is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.
Fortinet's product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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The artificial intelligence (AI) boom continues to set the direction for global financial markets in 2026, but Goldman Sachs strategists argue that opportunities exist outside this tech narrative as well.
Concentrated leadership in the AI trade has propelled US benchmark indices to record levels this year, prompting concerns that the current environment resembles a single trade rather than a diversified market.
To counter this, Goldman Sachs, in its latest research report, named three stocks poised to do rather well this year purely on concrete earnings growth, independent of AI tailwinds.
Note that these names have also recently secured positive revisions from Wall Street analysts.
While a 1% dip in Eli Lilly shares (year-to-date) may look like underperformance in an AI-driven market, Goldman sees the drugmaker’s valuation as refreshing because it relies almost entirely on real-world results.
According to the firm’s strategists, a mere 9% of Lilly’s recent returns stem from AI sentiment or macroeconomic indicators.
Instead, the real catalyst is explosive, tangible core earnings.
Driven by incredible demand for its blockbuster GLP-1 treatments and recent FDA approval of its weight-management pill, Foundayo, the pharmaceutical giant delivered a staggering 56% year-over-year increase in Q1 revenue.
This concrete growth recently made Morgan Stanley lift its price target on LLY shares to $1,344, representing a more than 25% upside from current levels.
Fortinet stock is a quintessential example of a “non-AI tech play” thriving entirely on operational execution.
While the broader tech industry rides the generative AI wave, FTNT’s explosive surge this year is rooted in a fundamental enterprise necessity: cybersecurity consolidation.
In fact, Goldman Sachs attributes less than one-third of the 70% it’s rallied in 2026 to the AI trade and macroeconomic pricing only.
In Q1, Fortinet smashed Wall Street expectations, delivering $1.9 billion in revenue – up 20% on a year-over-year basis – and adjusted per-share earnings of a better-than-expected $0.82.
A 31% pop in unified SASE billings and a massive 41% spike in product sales further helped the management raise its full-year top-line guidance with some confidence.
After the quarterly print earlier this month, BTIG raised FTNT shares to “buy”.
E-commerce pet retailer Chewy presents a classic “deep-value” proposition completely decoupled from tech mania.
At just 0.66x sales, the stock remains rather attractive given the company grew its revenue by more than 8% in latest reported quarter with gross margins approaching 30% even without the artificial intelligence tailwinds.
Wolfe Research analysts also maintain an “outperform” rating on CHWY stock with an aggressive $39 price target, representing more than 85% upside potential from current levels.
According to them, a near 40% year-to-date decline in Chewy fully prices in the downside – and the path of least resistance for this pet products retailer is upward, they added.
Key Takeaways Gartner sees AI spending hitting $2.59T in 2026, boosting cybersecurity demand across cloud systems. ETFs like CIBR and IHAK gained 13-19% YTD as firms ramp up AI security investments. IDC expects the global security market to grow 11.8% in 2026 on rising AI-driven threats. As global enterprises pour trillions into decentralized cloud networks and custom artificial intelligence (AI) silicon, the digital attack surface has been expanding at an unprecedented rate recently. For institutional investors, this surge in complexity is turning cybersecurity from a technical necessity into a non-discretionary economic moat.
Recent data underscores this urgency. Gartner forecasts that global AI spending will hit $2.59 trillion in 2026, a 47% year-on-year surge, with AI infrastructure accounting for the largest segment of this spending. This rapid acceleration of generative AI deployment has exposed critical vulnerabilities in its wake. According to Palo Alto Networks, 99% of organizations reported at least one attack on their AI systems over the past year, while a recent report from Orca Security stated that 84% of organizations now use AI in the cloud, with 62% running vulnerable AI packages.
Consequently, exchange-traded funds (ETFs) holding premier cybersecurity firms, such as Palo Alto Networks, CrowdStrike (CRWD - Free Report) and Fortinet (FTNT - Free Report) , are moving into the institutional spotlight, acting as a safe hedge in a volatile tech landscape.
The following analysis examines the connection between the AI boom and the rising cybersecurity imperative, along with what investors can expect from the market in the coming years, before highlighting the ETFs that may help capitalize on this trend.
The Indispensable Link Between AI Infrastructure and CybersecurityThe rapid buildout of AI infrastructure is the primary catalyst driving the massive uptick in cybersecurity demand. Training and deploying advanced large language models requires an unprecedented amount of data migration and processing power. To achieve this, organizations are shifting from centralized setups to decentralized cloud environments. This structural change opens dangerous entry points for sophisticated, AI-driven cyber threats like automated ransomware and advanced credential theft.
There is a direct correlation between rising cloud capital expenditures (Capex) and cybersecurity spending. Because complex data pipelines require end-to-end encryption, identity security, and cloud workload protection, cybersecurity has transformed from a standalone software expense into a foundational pillar of the physical AI buildout.
Driven by a massive surge in AI-enabled attack activity, enterprise leaders are actively prioritizing risk reduction over discretionary tech experiments. Evidently, 84% of enterprises are increasing cybersecurity spending as per Gartner’s 2026 CIO survey.
The OutlookThe outlook for the global cybersecurity sector is being shaped by an asymmetric spending dynamic, as security has become an essential complement to AI investment.
Tech giants are aggressively expanding their infrastructure, with collective hyperscaler Capex projected to approach $700 billion this year (as per a CNBC report). Historically, a fixed percentage of overall infrastructure Capex must be allocated directly to securing that very framework.
To this end, the International Data Corporation (“IDC”) estimates that the global security market will grow 11.8% in 2026, driven by rising investment in unified, AI-driven security platforms and related services. Software is expected to remain the largest technology category supporting this growth, with Identity and Access Management Software, Endpoint Security Software and Security Analytics projected to account for more than 50% of global security software spending this year.
As cyber threats, including those amplified by AI, become increasingly sophisticated, organizations are prioritizing these tools to prevent breaches, safeguard critical assets and gain actionable visibility across their environments.
Cybersecurity ETFs to Capture the TrendConsidering the aforementioned discussion, investors seeking exposure to companies that provide the “guardrails” for the AI ecosystem, while avoiding single-stock risk, may consider adding the following cybersecurity-focused ETFs to their portfolios:
First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report)
This fund, with net assets worth $12.94 billion, offers exposure to 42 companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations. CRWD holds the first position in this fund, with 10.47% weightage.
CIBR has rallied 18.2% year to date. The fund charges 58 basis points (bps) as fees and traded at a good volume of 2.45 million shares in the last trading session.
Amplify Cybersecurity ETF (HACK - Free Report)
This fund, with net assets worth $2.36 billion, offers exposure to 22 companies actively involved in providing cybersecurity solutions that include hardware, software and services. CRWD holds the first position in this fund, with 7.45% weightage.
HACK has gained 18.8% year to date. The fund charges 60 bps as fees and traded at a volume of 0.13 million shares in the last trading session.
Global X Cybersecurity ETF (BUG - Free Report)
This fund, with net assets worth $1.12 billion, offers exposure to 31 companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. FTNT holds the first position in this fund, with 7.43% weightage.
BUG has gained 13.4% year to date. The fund charges 50 bps as fees and traded at a volume of 0.75 million shares in the last trading session.
iShares Cybersecurity and Tech ETF (IHAK - Free Report)
This fund, with net assets worth $886.7 million, offers exposure to 38 companies at the forefront of cybersecurity across developed & emerging markets. Accton Technology holds the first position in this fund, with 9.06% weightage.
IHAK has rallied 18.5% year to date. The fund charges 47 bps as fees and traded at a volume of 0.18 million shares in the last trading session.
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Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.
FTNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. FTNT has a Growth Style Score of A, forecasting year-over-year earnings growth of 13% for the current fiscal year.
14 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.14 to $3.12 per share. FTNT also boasts an average earnings surprise of +17.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FTNT should be on investors' short list.
Fortinet: Navigating Sequential VolatilityFortinet (FTNT +0.89%) primarily generates revenue by selling integrated cybersecurity hardware, software licenses, and subscription services to enterprise customers.
It recently expanded its lineup with new firewall models and faced shareholder legal investigations, while reporting an approximately 29% net income margin for the quarter ended March 31, 2026.
CrowdStrike: Steady Sequential GrowthCrowdStrike (CRWD 1.27%) earns revenue mostly by selling cloud-based subscriptions for its security modules that protect endpoints, identity, and data.
It authorized a $500 million share repurchase increase and announced a 5% workforce reduction, and generated an approximately 5% net income margin for the quarter ended Jan. 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue represents the total amount of money a business brings in from its core operations before any expenses are subtracted. Tracking this metric helps investors measure a company's total customer sales volume and baseline growth trajectory over time.
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Quarterly Revenue for Fortinet and CrowdStrikeQuarter (Period End)Fortinet RevenueCrowdStrike RevenueQ2 2024$1.4 billion (period ended June 2024)$921.0 million (period ended April 2024)Q3 2024$1.5 billion (period ended Sept. 2024)$963.9 million (period ended July 2024)Q4 2024$1.7 billion (period ended Dec. 2024)$1.0 billion (period ended Oct. 2024)Q1 2025$1.5 billion (period ended March 2025)$1.1 billion (period ended Jan. 2025)Q2 2025$1.6 billion (period ended June 2025)$1.1 billion (period ended April 2025)Q3 2025$1.7 billion (period ended Sept. 2025)$1.2 billion (period ended July 2025)Q4 2025$1.9 billion (period ended Dec. 2025)$1.2 billion (period ended Oct. 2025)Q1 2026$1.8 billion (period ended March 2026)$1.3 billion (period ended Jan. 2026)Data source: Company filings. Data as of May 28, 2026.
Foolish TakeComparing revenue between Fortinet and CrowdStrike provides interesting insights to investors. As the older company, Fortinet’s total sales are higher than CrowdStrike’s. It is also seeing year-over-year revenue growth, which is a sign that its business is growing.
However, the trend over the past two years reveals CrowdStrike is experiencing consistent revenue growth nearly every quarter, while sequential quarterly sales are lumpy for its cybersecurity rival. For CrowdStrike to deliver an increase every quarter is impressive, and indicates strong customer demand for its cybersecurity solutions. If this sales trend continues, CrowdStrike is likely to overtake Fortinet in total sales over time.
CrowdStrike appears to be making the right moves to do so. Its Project QuiltWorks focuses on the security risks around artificial intelligence, and has gone beyond protecting against hackers and into insurance for AI’s penchant to make mistakes that can cause a business to suffer financial liability. The cybersecurity giant partnered with leading insurance providers, such as Liberty Mutual Insurance.
The expeditious if not aggressive rollout of artificial intelligence (AI) has had its fair share of consequences—both positive and negative—in just a few years.
On one hand, the global memory chip shortage has resulted in new members of the trillion-dollar market cap club while rewarding shareholders with once-in-a-generation gains. On the other hand, AI-assisted hacking and malware deployments have created a situation wherein demand for cybersecurity is not only unprecedented, it is absolutely critical.
According to Harvard Business Review, “the average AI-enabled data breach now costs organizations $4.88 million; a figure that does not account for reputational damage, regulatory penalties, or the cascading operational failures that follow.”
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But for investors, there’s a silver lining. With cyberattacks on the rise, demand for enterprise security firms is increasing. That has provided an enormous, sustainable tailwind for one exchange-traded fund (ETF) in particular.
AI-Assisted Cyberattacks (and Budgets to Combat Them) Are on the RiseThe advent of AI has caused a measurable increase in the rate, scale, and sophistication of cyberattacks and data breaches.
A 2026 study conducted by International Business Machines NYSE: IBM found a 44% year-over-year (YOY) increase in the exploitation of public-facing software or system applications, 300,000 AI chatbot credentials observed for sale on the dark web, and a 49% YOY Increase in active ransomware groups.
Harvard Business Review has warned that AI-enabled cyberattacks are becoming more autonomous and adaptive, with systems capable of probing defenses, identifying weaknesses and changing tactics in real time without human direction. The report also noted that 77% of organizations lack the foundational data and AI security practices needed to safeguard critical technology infrastructure.
Fortunately, businesses, governments, and other institutions aren’t resting on their laurels. According to industry consultancy firm Grand View Research, the global cybersecurity market, which was valued at nearly $272 billion in 2025, is expected to reach more than $663 billion by 2033. That is good for a compound annual growth rate (CAGR) of 11.9% and a total addressable market that is more than 144% larger than it was last year.
The global cybersecurity services market, specifically, is poised to grow by a CAGR of 14.8% through 2033, with Grand View Research citing that “advances in AI, the Internet of Things, and machine learning have led to increased adoption of web and mobile applications, creating a more complex IT infrastructure that is increasingly vulnerable to cyberattacks.”
That bodes particularly well for the Amplify Cybersecurity ETF NYSEARCA: HACK and its portfolio of top-tier cybersecurity firms.
A Basket of Booming Cybersecurity StocksAmplify Cybersecurity ETF Today
HACK
Amplify Cybersecurity ETF
$96.05 -0.57 (-0.59%)
As of 04:10 PM Eastern
52-Week Range$69.66▼
$105.56Dividend Yield0.06%
Assets Under Management$2.38 billion
Considering that forecasted growth alongside the increasing rate of malware, phishing, ransomware, and zero-day exploit threats, it’s no surprise that the Amplify Cybersecurity ETF NYSEARCA: HACK has been surging higher this year.
Since its year-to-date (YTD) low on February 23, the fund has gained more than 49%, recently hitting its all-time high, as its basket of best-in-class cybersecurity firms continues to reward shareholders.
That success is largely attributable to the fact that the fund aims to track the Nasdaq ISE Cyber Security Select Index. In doing so, it includes companies that develop, implement, or provide cybersecurity hardware, software, and services. The index’s constituents are companies that derive at least 90% of their revenue from cyber defense.
Prior to this year, the ETF’s performance was lackluster, with HACK only having gained around 20% for the five years prior to its aforementioned YTD low. But given the rise of data breaches, AI-assisted cyberthreats, and swelling corporate budget lines aimed at combatting those risks, the companies in the Amplify Cybersecurity ETF have been outperforming this year.
The fund’s holdings include the who’s who of enterprise security providers, with its top five allocations being:
CrowdStrike NASDAQ: CRWD: up around 60% YTD
Broadcom NASDAQ: AVGO: up around 40% YTD
Palo Alto Networks NASDAQ: PANW: up over 50% YTD
Cisco Systems NASDAQ: CSCO: up more than 65% YTD
Fortinet NASDAQ: FTNT: up nearly 85% YTD
Together, those five positions account for more than 36% of the ETF’s portfolio. On the whole, more than 87% of the fund’s holdings are domiciled in the United States, with the remaining companies located in Israel and Japan.
Amplify’s ETF Is the Ultimate Cybersecurity Portfolio HACKAmplify Cybersecurity ETF Stock Forecast Today12-Month Stock Price Forecast:
$96.66
1.03% Upside
Moderate Buy
Based on 536 Analyst Ratings
Current Price$95.67High Forecast$96.66Average Forecast$96.66Low Forecast$96.66Amplify Cybersecurity ETF Stock Forecast Details
The passively managed fund carries an expense ratio of 0.60%, which puts it on par with the average fees charged by thematic ETFs.
That figure is, to some extent, offset by a dividend that yields six cents per share annually.
With average daily volume of around 127,000 shares and $2.60 billion in assets under management, trading can be light.
But for investors looking to add exposure to the cybersecurity trend, the ETF receives a Moderate Buy rating based on 531 ratings by analysts who cover more than 96% of the companies in HACK’s portfolio.
The smart money is treating the fund accordingly, with inflows from institutional buyers surpassing outflows by a margin of around $171 million to just over $75 million, respectively, over the past 12 months. Meanwhile, short interest is infinitesimal at just 0.19% of the float, or a mere 48,136 shares out of the 24.85 million shares outstanding.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.
FTNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. FTNT has a Momentum Style Score of B, and shares are up 62.9% over the past four weeks.
For fiscal 2026, 15 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $3.13 per share. FTNT boasts an average earnings surprise of +17.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FTNT should be on investors' short list.
